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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
 
FORM
10-K
 
☒
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For
the fiscal year ended March 31, 2024
 
OR
 
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
Commission
File No. 000-55000
 

 
EARTH
SCIENCE TECH, INC.
(Exact
name of registrant as specified in its charter)
 


florida
 
80-0961484

(State
    or other jurisdiction of
 
(I.R.S.
    Employer

incorporation
    or organization)
 
Identification
    No.)

 
8950
SW 74th CT
Suite
101
Miami,
FL 33156, USA
(Address
of principal executive offices, zip code)
 
(305)
724-5684
(Registrant’s
telephone number, including area code)
 
10650
NW 29th Terrace
Doral,
FL 33172, USA
(Former
name, former address and former fiscal year, if changed since last report)
 
Securities
registered pursuant to Section 12(g) of the Act:
 


Title
    of Each Class
 
Trading
    Symbol
 
Name
    of each exchange on which registered

Common
    Stock $0.001 par value
 
ETST
 
Over
    the Counter Bulletin Board

 
Securities
registered pursuant to Section 12(b) of the Act: None
 
Indicate
by check mark if the registrant is a well-known seasoned issuer as defined in Rule 405 of the Securities Act.
 
Yes
☐ No ☒
 
Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.
 
Yes
☒ No ☐
 
Indicate
by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has
been subject to such filing requirements for the past 90 days.
 
Yes
☒ No ☐
 
Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data
File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding
12 months (or for such shorter period that the registrant was required to submit and post such files).
 
Yes
☒ No ☐
 
Indicate
by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of “large, accelerated filer,” “accelerated filer” and “smaller reporting
company” in Rule 12b-2 of the Exchange Act. (Check one):
 


Large,
    accelerated filer
☐
 
Accelerated
    filer
☐

 
 
 
 
 

Non-accelerated
    filer
☐
(Do
    not check if a smaller reporting company)
Smaller
    reporting company
☒

 
 
 
 
 

Emerging
    Growth Company
☐
 
 
 

 
If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements. ☒
 
Indicate
by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐
 
Indicate
by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2 of the Exchange Act):
 
Yes
☐ No ☒
 
The
aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which
the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the Registrant’s
most recently completed fiscal year (March 31, 2024) was approximately $20,768,781.87
 
APPLICABLE
ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
 
PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
 
Indicate
by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.
 
Yes
☐ No ☒
 
The
number of shares of Common Stock, $0.001 par value, outstanding on June 25th, 2024, was 309,981,819.
 
APPLICABLE
ONLY TO CORPORATE ISSUERS
 


Audit
    Firm ID
 
Auditor
    Name
 
Auditor
    Location

5036
 
Assurance
    Dimensions
 
Margate,
    FL

 

 
 

 
 

 
TABLE
OF CONTENTS
 


 
 
PAGE

PART I
 

Item
    1.
Business.
4

Item
    1A.
Risk Factors.
5

Item
    1B.
Unresolved Staff Comments.
9

Item
    1C.
Cybersecurity.
10

Item
    2.
Properties.
10

Item
    3.
Legal Proceedings.
10

Item
    4.
Mine Safety Disclosure.
10

PART II
 

Item
    5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
11

Item
    6.
Selected Financial Data
13

Item
    7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations.
14

Item
    7A.
Quantitative and Qualitative Disclosures About Market Risk.
19

Item
    8.
Financial Statements and Supplementary Data.
19

Item
    9A.
Controls and Procedures.
21

Item
    9B.
Other Information.
22

PART III
 

Item
    10.
Directors, Executive Officers and Corporate Governance.
23

Item
    11. 
Executive Compensation.
25

Item
    12. 
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
27

Item
    13.
Certain Relationships and Related Transactions, and Director Independence.
30

Item
    14.
Principal Accounting Fees and Services.
30

PART IV
 

Item
    15.
Exhibits, Financial Statement Schedules.
31

Item
    16.
FORM 10-K Summary
31

 
SIGNATURES
32

 

2
 

 
WHERE
YOU CAN FIND MORE INFORMATION
 
We
file annual, quarterly, and current reports, proxy statements and other information required by the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), with the Securities and Exchange Commission (the “SEC”). You may read and copy
any document we file with the SEC at the SEC’s public reference room located at 100 F Street, N.E., Washington, D.C. 20549, U.S.A.
Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. Our SEC filings are also available to the
public from the SEC’s internet site at http://www.sec.gov.
 
On
our Internet website, http://www.earthsciencetech.com, we post the following recent filings as soon as reasonably practicable after they
are electronically filed with or furnished to the SEC: our annual reports on Form 10-K, our quarterly reports on Form 10-Q, our current
reports on Form 8-K, and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act.
 
When
we use the terms “ETST,” “Company,” “we,” “our,” and “us,”
we mean Earth Science Tech, Inc., a Florida corporation, and its consolidated subsidiaries, taken as a whole, as well as any predecessor
entities, unless the context indicates otherwise.
 
FORWARD
LOOKING STATEMENTS
 
This
Annual Report on Form 10-K, the other reports, statements, and information that the Company has previously filed with or furnished to,
or that we may subsequently file with or furnish to, the SEC, and public announcements that we have previously made or may subsequently
make include, may include, or may incorporate by reference certain statements that may be deemed to be “forward-looking statements”
within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and that are intended to enjoy the protection
of the safe harbor for forward-looking statements provided by that Act. To the extent that any statements made in this report contain
information that is not historical, these statements are essentially forward-looking. Forward-looking statements can be identified using
words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,”
“ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,”
“could,” and other words of similar meaning. These statements are subject to risks and uncertainties that cannot be predicted
or quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements.
Such risks and uncertainties include, without limitation, marketability of our products; legal and regulatory risks associated with OTC
Markets; our ability to raise additional capital to finance our activities; the future trading of our common stock; our ability to operate
as a public company; our ability to protect our proprietary information; general economic and business conditions; the volatility of
our operating results and financial condition; our ability to attract or retain qualified senior management personnel and research and
development staff; and other risks detailed from time to time in our filings with the SEC, or otherwise.
 
Information
regarding market and industry statistics contained in this report is included based on information available to us that we believe is
accurate. It is generally based on industry and other publications that are not produced for the purposes of securities offerings or
economic analysis. Forecasts and other forward-looking information obtained from these sources are subject to the same qualifications
and the additional uncertainties accompanying any estimates of future market size, revenue and market acceptance of products and services.
We do not undertake any obligation to publicly update any forward-looking statements. As a result, investors should not place undue reliance
on these forward-looking statements.
 

3
 

 
PART
I
 
ITEM
1. BUSINESS
 
BUSINESS
BACKGROUND AND OVERVIEW
 
Earth
Science Tech, Inc. (“ETST” or the “Company”) was incorporated under the laws of the State of Nevada on April
23, 2010. The Company subsequently changed its domicile to the State of Florida on June 27, 2022. As of November 8, 2022, the Company
is a holding entity set to acquire companies with its current focus in the health and wellness industry. The Company is presently in
compounding pharmaceuticals and telemedicine through its wholly owned subsidiaries RxCompoundStore.com, LLC. (“RxCompound”),
Peaks Curative, LLC. (“Peaks”), and Earth Science Foundation, Inc. (“ESF”).
 
RxCompound
is a complete compounding pharmacy. RxCompound is currently
licensed to fulfill prescriptions in 22 states: Delaware, Florida, Pennsylvania, New York, Arizona,
New Jersey, Wisconsin, Minnesota, Rhode Island, Utah, Georgia, Nevada, Massachusetts, Missouri, Iowa, Maryland, Ohio, Colorado, North
Carolina, Maine, Indiana and Illinois. RxCompound is in the application process to obtain licenses in the remaining states in
which it is not yet licensed to fulfill prescriptions.
 
Peaks
is a telemedicine referral site focused on overall health and wellness for men and women. Peaks’ orders are exclusively fulfilled
by RxCompound. Patients who order Peaks via monthly subscription receive their refills automatically. The company intends to expand offerings
to include over the counter (“OTC”) (non-prescription) products such as supplements and topicals.
 
ESF
is a favored entity of ETST, effectively being a non-profit organization that was incorporated on February 11, 2019, and is structured
to accept grants and donations to help those in need of assistance in paying for prescriptions.
 
Current
Operations
 
CORPORATE
STRATEGY
 
The
Company currently operates as a holding entity with a presence in the telehealth and compounding pharmaceutical sectors. Its primary
objective is to deliver contemporary and personalized health and wellness medications to patients.
 

4
 

 
PRODUCT
REGULATION
 
As
a consumer-driven healthcare organization, we are required to comply with complex healthcare laws and regulations at both the state and
federal level.
 
Marketing
 
Peaks’
marketing strategy relies on a combination of social media and search advertising techniques to reach its target audience effectively.
 
RxCompound
has garnered a remarkable reputation through positive word-of-mouth, owing to its innovative approaches and unwavering commitment to
quality.
 
COMPETITION
 
The
Company’s competitors are other Specialty Compounding Pharmacies in the markets in which the subsidiaries operate and any telehealth
platforms with a presence in overall health for men and women.
 
EMPLOYEES
 
As
of March 31, 2024, the Company has thirty-two employees. None of our employees are represented by a union or covered by a collective
bargaining agreement. We have not experienced any work stoppages, and we consider our relationship with our employees to be good.
 





ITEM
1A. RISK FACTORS
 
A
description of the risks and uncertainties associated with our business and ownership of our Class A common stock is set forth below.
You should carefully consider the risks described below, as well as the other information in this Annual Report on Form 10-K, including
our consolidated financial statements and the related notes and “Management’s Discussion and Analysis of Financial Condition
and Results of Operations.” The occurrence of any of the events or developments described below could materially and adversely
affect our business, financial condition, results of operations, and growth prospects. In such an event, the market price of our Class
A common stock could decline. Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also
impair our business operations. This Annual Report on Form 10-K also contains forward-looking statements that involve risks and uncertainties.
Our actual results could differ materially from those anticipated in the forward-looking statements as a result of a number of factors,
including the risks described below. See “Cautionary Note Regarding Forward-Looking Statements.”
 
Summary
of Principal Risk Factors
 


 
●
Our
    limited operating history and evolving business make it difficult to evaluate our current business and future prospects and increase
    the risk of your investment.



 



 
●
Our
    results of operations, as well as our key metrics, may fluctuate on a quarterly and annual basis, which may result in our failing
    to meet the expectations of industry and securities analysts or our investors.

 





 
●
If
    we are unable to expand the scope of our offerings, including the number and type of products and services that we offer, the number
    and quality of healthcare providers serving our customers, and the number and types of conditions capable of being treated through
    our platform, our business, financial condition, and results of operations may be materially and adversely affected.




 


 
●
If
    we are unable to successfully market to new customers and retain existing customers, or if evolving privacy, healthcare, or other
    laws prevent or limit our marketing activities, our business, financial condition, and results of operations could be harmed.



 



 
●
We
    operate in highly competitive markets and face competition from large, well-established healthcare providers and more traditional
    retailers and pharmaceutical providers with significant resources, and, as a result, we may not be able to compete effectively.

 





 
●
Our
    brand is integral to our success. If we fail to effectively maintain, promote, and enhance our brand in a cost-effective manner,
    our business and competitive advantage may be harmed.


 





 
●
Our
    pharmacy business subjects us to additional healthcare laws and regulations beyond those we face with our core telehealth business
    and increases the complexity and extent of our compliance and regulatory obligations.

 





 
●
If
    we fail to comply with applicable healthcare and other governmental regulations, we could face substantial penalties, our business,
    financial condition, and results of operations could be adversely affected, and we may be required to restructure our operations.




 


5
 


 


 
●
Evolving
    government regulations and enforcement activities may require increased costs or adversely affect our results of operations.

 




 
●
Security
    breaches, loss of data, and other disruptions could compromise sensitive information related to our business or customers or prevent
    us from accessing critical information and expose us to liability, which could adversely affect our business and our reputation.

 





 
●
We
    may be subject to legal proceedings and litigation, including intellectual property disputes, which are costly to defend and could
    materially harm our business and results of operations.

 





 
●
We
    may require additional capital to support business growth, and this capital might not be available on acceptable terms, if at all.

 





 
●
Our
    Series B class Preferred stock structure has the effect of concentrating voting power with our Chief Executive Officer and Director,
    Giorgio R. Saumat, which limits an investor’s ability to influence the outcome of important transactions, including a change
    in control.



 


 
●
The
    market price of our common stock may be volatile.

 



Risks
Related to Peaks and RxCompound Business
 
Our
limited operating history and evolving business make it difficult to evaluate our current business and future prospects and increase
the risk of your investment.
 
If
we are unable to expand the scope of our offerings, including the number and type of products and services that we offer, the number
and quality of healthcare providers serving our customers, and the number and types of conditions capable of being treated through our
platform, our business, financial condition, and results of operations may be materially and adversely affected.
 
If
we are unable to successfully market to new customers and retain existing customers, or if evolving privacy, healthcare, or other laws
prevent or limit our marketing activities, our business, financial condition, and results of operations could be harmed.
 
Use
of social media and celebrity influencers may materially and adversely affect our reputation or subject us to fines or other penalties.
 
Our
brand is integral to our success. If we fail to effectively maintain, promote, and enhance our brand in a cost-effective manner, our
business and competitive advantage may be harmed.
 
The
failure of our offerings to achieve and maintain market acceptance could result in our achieving revenue below our expectations, which
could cause our business, financial condition, and results of operations to be materially and adversely affected.
 
The
market for Peaks’ business model and services is new, rapidly evolving, and increasingly competitive, as the healthcare industry
in the United States is undergoing significant structural change and consolidation, which makes it difficult to forecast demand for our
solutions.
 
Competitive
platforms or other technological breakthroughs for the monitoring, treatment, or prevention of medical conditions may adversely affect
demand for our offerings.

 

6
 


 
We
operate in highly competitive markets and face competition from large, well-established healthcare providers and more traditional retailers
and pharmaceutical providers with significant resources, and, as a result, we may not be able to compete effectively.
 
The
activities and quality of healthcare providers treating Peaks’ customers and providing prescriptions to RxCompound, including any
potentially unethical or illegal practices, could damage our brand, subject us to liability, and harm our business and financial results.
 
Any
failure to offer high-quality support may adversely affect the Company’s relationships with customers and healthcare providers,
and in turn the Company’s financial condition, and results of operations.
 
Acquisitions
and investments could result in operating difficulties, dilution, and other harmful consequences that may adversely impact the Company,
financial condition, and results of operations. Additionally, if the Company is not able to identify and successfully acquire suitable
businesses, the Company, results of operations, and prospects could be harmed.
 
Economic
uncertainty or downturns, particularly as it impacts the healthcare industry, could adversely affect the Company’s business, financial
condition, and results of operations.
 
If
Peaks is unable to deliver a rewarding experience on mobile devices, Peaks may be unable to attract and retain customers.
 
Peaks’
business depends on continued and unimpeded access to the internet and mobile networks.
 
We
depend on a number of other companies to perform functions critical to Peaks’ ability to operate its platform and RxCompound’s
ability to offer services, generate revenue from customers, and to perform many of the related functions.
 
Disruption
in the Company’s supply chain could negatively impact our business.
 
The
Pharmacy business subjects the Company to additional healthcare laws and regulations beyond those that Peaks faces with its core telehealth
business, and RxCompound’s services increase the complexity and extent of compliance and regulatory obligations.
 
The
Company’s payments system depends on third-party service providers and is subject to evolving laws and regulations.
 
The
Company’s pricing decisions may adversely affect our ability to attract new customers, healthcare providers, and other partners.
 
The
Company’s success depends on the continuing and collaborative efforts of its management team, and its business may be severely
disrupted if the company loses their services.
 
We
depend on the Company’s talent to grow and operate its business, and if unable to hire, integrate, develop, motivate, and retain
personnel, the Company may not be able to grow effectively.
 
The
Company’s inventory is stored in RxCompound’s facility located in Miami, FL, and any damage or disruption at the facility
may harm the business.

 
Risks
Related to Governmental Regulation
 
If
the Company fails to comply with applicable healthcare and other governmental regulations, we could face substantial penalties, our business,
financial condition, and results of operations could be adversely affected, and we may be required to restructure our operations.
 


7
 


 
If
Peaks or RxCompound’s practices are found to violate federal or state anti-kickback, physician self-referral, or false claims laws,
the Company may incur significant penalties and reputational damage that could adversely affect our business.
 
Evolving
government regulations and enforcement activities may require increased costs or adversely affect the Company’s results of operations.
 
Changes
in public policy that mandate or enhance healthcare coverage could have a material adverse effect on the business, operations, and/or
results of operations.
 
The
products Peaks and RxCompound sell are subject to FDA regulations and other international, federal, state, and local requirements, and
if the Company fails to comply with international, federal, state, and local requirements, Peaks and RxCompound’s ability to fulfill
customers’ orders through our platform could be impaired.
 
Peaks
and RxCompound may be subject to fines, penalties, and injunctions if we are determined to be promoting the use of products for unapproved
uses.
 
The
information that Peaks and RxCompound provide to healthcare providers, customers, and partners could be inaccurate or incomplete, which
could harm the business, financial condition, and results of operations.
 
Peaks
and RxCompound use, disclosure, and other processing of personally identifiable information, including health information, is subject
to federal, state, and foreign privacy and security regulations, and failure to comply with those regulations or to adequately secure
the information held could result in significant liability or reputational harm and, in turn, a material adverse effect on customers,
providers, and revenue.
 
Public
scrutiny of internet privacy and security issues may result in increased regulation and different industry standards, which could deter
or prevent Peaks from providing services to customers, thereby harming the business.
 
Security
breaches, loss of data, and other disruptions could compromise sensitive information related to the business or to customers or prevent
access to critical information and expose the Company to liability, which could adversely affect the business and its reputation.
 
Failure
to comply with anti-bribery, anti-corruption, and anti-money laundering laws could subject the Company to penalties and other adverse
consequences.
 
Risks
Related to Intellectual Property and Legal Proceedings
 
Failure
to protect or enforce our intellectual property rights could harm the business and results of operations.
 
The
Company may in the future be subject to claims that we violated the intellectual property rights of others, which are extremely costly
to defend and could require us to pay significant damages and limit our ability to operate.
 
The
Company may be subject to legal proceedings and litigation, including intellectual property disputes, which are costly to defend and
could materially harm the business and results of operations.
 
Changes
in accounting rules, assumptions, or judgments could materially and adversely affect the Company, including recent statements from the
SEC regarding SPAC-related companies.
 
The
Company faces the risk of product liability claims and may not be able to maintain or obtain insurance.
 
The
business could be disrupted by catastrophic events and man-made problems, such as power disruptions, data security breaches, and terrorism.

 

8
 


 
Risks
Related to the Company, Results of Operations, and Additional Capital Requirements
 
The
Company has a history of net losses, anticipates increasing expenses in the future, and may not be able to achieve or maintain profitability.
 
The
Company’s results of operations, as well as our key metrics, may fluctuate on a quarterly and annual basis, which may result in
failing to meet the expectations of industry and securities analysts or its investors.
 
Peaks
relies significantly on revenue from customers purchasing subscription-based prescription products and services and may not be successful
in expanding its offerings.
 
The
requirements of being a public company have strained and may continue to strain the Company’s resources, divert management’s
attention, and may result in litigation.
 
The
Company may require additional capital to support business growth, and this capital might not be available on acceptable terms, if at
all.
 
If
the Company’s estimates or judgments relating to its significant accounting policies prove to be incorrect, the results of operations
could be adversely affected.
 
Adverse
tax laws or regulations could be enacted, or existing laws could be applied to the Company or to customers, which could subject us to
additional tax liability and related interest and penalties, increase the costs of the Company’s offerings, and adversely impact
our business.
 
Certain
U.S. state tax authorities may assert the Company has a state nexus and seek to impose state and local income taxes which could harm
the results of operations.
 
Risks
Related to Ownership of the Company Securities
 
Trading
in our common stock on the Pink Exchange has been subject to wide fluctuations.
 
Our
common stock is currently quoted only on the OTC Pink Marketplace, which may have an unfavorable impact on our stock price and liquidity.
 
The
regulation of penny stocks by SEC and FINRA may discourage the tradability of our securities.
 
Florida
law, our Articles of Incorporation, and our by-laws provides for the indemnification of our officers and directors at our expense, and
correspondingly limits their liability, which may result in a major cost to us and hurt the interests of our shareholders because corporate
resources may be expended for the benefit of officers and/or directors.
 
We
do not intend to pay cash dividends on any investment in the shares of stock of our Company and any gain on an investment in our Company
will need to come through an increase in our stock’s price, which may never happen.
 
Because
our securities are subject to penny stock rules, you may have difficulty reselling your shares.
 
Our
common stock market prices may be volatile, which substantially increases the risk that investors may not be able to sell their Securities
at or above the price that was paid for the security.
 
Because
we may issue additional shares of our common stock, investment in our company could be subject to substantial dilution.
 
FINRA
sales practice requirements may also limit a stockholder’s ability to buy and sell our stock.
 
The
issuance of shares to enter acquisitions may have a significant dilutive effect.
 



ITEM
1B. UNRESOLVED STAFF COMMENTS
 
None.
 

9
 

 
ITEM
1C. CYBERSECURITY
 
ETST
recognizes the growing importance of cybersecurity. Recently, the company hired Chris Rose as the Chief Technology Officer (CTO) on April
1st, 2024. Chris assumes the primary responsibility for overseeing our cybersecurity risk exposure. This includes evaluating, assessing,
and enhancing cybersecurity practices across the organization.
 
Initial
Risk Assessment
 
Upon
assuming the role, the new CTO conducted an initial IT and Security risk assessment. This involved employee sit--along, inventorying
all tech systems and assets, and reviewing existing practices, procedures, and policies. The findings were meticulously cataloged, and
a weighted scoring system was applied to rank risks based on impact and likelihood. Action plans have been developed and are being addressed
in priority ranked order. These assessments will be updated quarterly, addressing new and outstanding risks and remediation plans.
 
Third-Party
Engagement
 
To
expedite security policy changes, active threat monitoring, infrastructure enhancements, device management, and endpoint security, the
CTO has engaged additional third-party IT consultants.
 
ITEM
2. PROPERTY AND EQUIPMENT
 
The
Company’s Subsidiary RxCompound uses a variety of pharmaceutical compounding equipment in its operations. Most of the
equipment used by the Company is owned outright by the Company, but the Company does lease certain equipment. The leases for such
equipment contain terms that are customary in the industries in which the Company operates. On March 31, 2024, the Company had
$176,602 in property and equipment with approximately $41,250 in accumulated depreciation.
 
ITEM
3. LEGAL PROCEEDINGS
 
From
time to time and during the course of business, we may become involved in various legal proceedings seeking monetary damages and other
relief. The amount of the ultimate liability, if any, from such claims cannot be determined. As of the date hereof, there are no legal
claims currently pending or, to our knowledge, threatened against us or any of our officers or directors in their capacity as such, or
against any of our properties that, in the opinion of our management, would be likely to have a material, adverse effect on our financial
position, results of operations, or cash flows.
 
On February 8th, 2023 the Company was made aware of a complaint against it filed in Canada by the AMF (Quebec Securities
Regulator). The complaint was based on actions by previous management. The Company settled the complaint with the AMF on May 23rd, 2023
by paying a fine of $10,000 CAD ($7,452.00 USD) and agreeing not to sell any securities in Quebec.
 
ITEM
4. MINE SAFETY DISCLOSURE
 
Not
applicable.
 

10
 

 
PART
II
 
ITEM
5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.
 
Our
common stock is currently quoted on the OTC Pink Market under the symbol “ETST”. Our common stock has been quoted on the
OTC Pink Market since October 6, 2021, under the symbol “ETST”. Because we are quoted on the OTC Pink Market, our securities
may be less liquid, receive less coverage by security analysts and news media, and generate lower prices than might otherwise be obtained
if they were listed on a national securities exchange.
 
The
following table sets forth the high and low bid quotations for our common stock as reported in the Pink for the periods indicated.
 


Fiscal Year Ending March 31st, 2024 
Low  
High 

First Quarter – reported June 30, 2023 
$0.022  
$0.050 

Second Quarter – reported September 30, 2023 
$0.001  
$0.115 

Third Quarter – reported December 31, 2023 
$0.011  
$0.110 

Fourth Quarter – reported March 31, 2024 
$0.011  
$0.100 

 


Fiscal Year Ending March 31st, 2023 
Low  
High 

First Quarter – reported June 30, 2022 
$0.023  
$0.029 

Second Quarter – reported September 30, 2022 
$0.014  
$0.016 

Third Quarter – reported December 31, 2022 
$0.031  
$0.031 

Fourth Quarter – reported March 31, 2023 
$0.024  
$0.050 

 
HOLDERS
 
As
of March 31, 2024, there were 215 record holders of the Company’s common stock.
 
DIVIDENDS
 
We
have not paid any dividends on our common stock since our inception and do not intend to pay any dividends in the foreseeable future.
 
The
declaration of any future cash dividends is at the discretion of our board of directors and depends upon our earnings, if any, our capital
requirements and financial position, our general economic conditions, and other pertinent conditions. It is our present intention not
to pay any cash dividends in the foreseeable future, but rather to reinvest earnings, if any, in our business operations.
 
UNREGISTERED
SALES OF SECURITIES
 
The
following shares sold and issued were shares of restricted Common Stock made in reliance upon the exemptions from registration provided
by Section 4(2) of the Securities Act of 1933, and/or Rule 506 of Regulation D promulgated thereunder. The investors were “accredited
investors” and/or “sophisticated investors” pursuant to Section 501(a) of the Securities Act, who provided the Company
with representations, warranties and information concerning their qualifications as a “sophisticated investors” and/or “accredited
investors.” The Company provided and made available to the investor’s full information regarding its business and operations.
There was no general solicitation in connection with the offers or sales of the restricted securities. The investors acquired the restricted
common stock for their own accounts, for investment purposes, and not with a view to public resale or distribution thereof within the
meaning of the Securities Act. The restricted shares so purchased cannot be sold unless pursuant to an effective registration statement
by the Company, or by exemptions from registration requirements of Section 5 of the Securities Act—the existence of any such exemptions
is subject to legal review and approval by the Company.
 
Approximately
during the twelve months ended March 31, 2024, the Company issued 18,864,423 shares of its common stock for $110,000, in
transactions that were exempt from registration under the Securities Act of 1933, as amended pursuant to Section 4(2) and/or Rule
506 promulgate under Regulation D. No gain or loss was recognized on the issuances. On April 5, 2023, the Company issued 5,000,000
shares to an investor at $0.005 per share for cash. On April 14, 2023, the Company issued 666,667 shares to an investor at $0.015
per share for cash. On April 27, 2023, the Company issued 5,000,000 shares to an investor at $0.005 per share for cash. On May 2,
2023, the Company issued 666,667 shares to an investor at $0.015 per share in cash. On May 4, 2023, the Company issued 2,000,000
shares to an investor at $0.005 per share for cash. On May 4, 2023, the Company issued 200,000 shares to an investor at $0.025 per
share for cash. On May 24, 2023, the Company issued 5,000,000 shares to an investor at $0.005 per share for cash. On October 1,
2023, the Company issued 300,000 shares to an employee at $0.001 per share for services.
 

11
 

 
EQUITY
COMPENSATION PLAN INFORMATION
 
The
Company currently does not have an equity compensation plan in place.
 
COMMON
STOCK
 
The
holders of our common stock are entitled to one vote per share on all matters submitted to a vote of our stockholders. The holders of
the common stock have the sole right to vote, except as otherwise provided by law, by our articles of incorporation, or in a statement
by our board of directors in a Preferred Stock Designation.
 
In
addition, such holders are entitled to receive ratably such dividends, if any, as may be declared from time to time by our board of directors
out of legally available funds, subject to the payment of preferential dividends or other restrictions on dividends contained in any
Preferred Stock Designation, including, without limitation, the Preferred Stock Designation establishing a series of preferred stock
described above. In the event of the dissolution, liquidation or winding up of Earth Science Tech, Inc., the holders of our common stock
are entitled to share ratably in all assets remaining after payment of all our liabilities, subject to the preferential distribution
rights granted to the holders of any series of our preferred stock in any Preferred Stock Designation, including, without limitation,
the Preferred Stock Designation establishing a series of our preferred stock described above.
 
The
holders of the common stock do not have cumulative voting rights or preemptive rights to acquire or subscribe for additional, unissued
or treasury shares in accordance with the laws of the State of Florida. Accordingly, excluding any voting rights granted to any series
of our preferred stock, the holders of more than 50 percent of the issued and outstanding shares of the common stock voting for the election
of directors can elect all of the directors if they choose to do so, and in such event, the holders of the remaining shares of the common
stock voting for the election of the directors will be unable to elect any person or persons to the board of directors. All outstanding
shares of the common stock are fully paid and non-assessable.
 
The
laws of the State of Florida provide that the affirmative vote of a majority of the holders of the outstanding shares of our common stock
and any series of our preferred stock entitled to vote thereon is required to authorize any amendment to our articles of incorporation,
any merger or consolidation of Earth Science Tech, Inc. with any corporation, or any liquidation or disposition of any substantial assets
of Earth Science Tech, Inc.
 

12
 

 
PREFERRED
STOCK
 
On
April 21, 2022, the Company’s Board of Directors adopted articles of incorporation in the state of Nevada authorizing, without
further vote or action by the stockholders, the creation, out of the unissued shares of the Company’s preferred stock, $0.001 par
value Series B Preferred Stock. The Board of Directors is authorized to establish, from the authorized and unissued shares of Preferred
Stock, one or more classes or series of shares, to designate each such class and series, and fix the rights and preferences of each such
class of Preferred Stock; which class or series shall have such voting powers, such preferences, relative, participating, optional or
other special rights, and such qualifications, limitations or restrictions as shall be stated and expressed in the resolution or resolutions
providing for the issuance of such class or series of Preferred Stock as may be adopted from time to time by the Board of Directors prior
to the issuance of any shares thereof. The articles of incorporation and designation authorizes the issuance of 1,000,000 shares of Preferred
Stock, of which 1,000,000 shares have been designated as Series B Preferred Stock, of which 1,000,000 shares of Series B are issued and
outstanding as of March 31, 2024. Each issued and outstanding share of Series B Preferred Stock shall be entitled to the number of votes
equal to the result of: (i) 1.5 multiplied by the addition sum of: (A) the number of shares of Common Stock issued and outstanding at
the time of such vote; and (B) the number of votes in the aggregate of any outstanding shares of any class of preferred stock of the
Corporation (other than the Series B Preferred Stock), if any, at the time of such vote; with such sum divided by (ii) the total number
of shares of Series B Preferred Stock issued and outstanding at the time of such vote, at each meeting of shareholders of the Corporation
with respect to any and all matters presented to the shareholders of the Corporation for their action or consideration, including the
election of directors. Holders of Series B Preferred Stock shall vote together with the holders of Common Shares (and any other outstanding
class of preferred stock of the Corporation (other than the Series B Preferred Stock), if any.
 
WARRANTS
 
The
Company does not currently have any warrants issued or outstanding.
 
ISSUER
REPURCHASES OF EQUITY SECURITIES
 
During
the twelve months ended March 31, 2024, the Company repurchased 5,200,000 shares of its common stock for $178,000, in private transactions
through Stock Purchase Agreements with certain shareholders. On January 29, 2024, the Company repurchased 1,000,000 shares from an investor
at $0.04 per share in cash. On February 16, 2024, the Company repurchased a total of 1,500,002 shares from two investors at $0.04 per
share in cash. On February 22, 2024, the Company repurchased 2,000,000 shares from an investor at $0.03 per share in cash. On February
23, 2024, the Company repurchased 200,000 shares from an investor at $0.04 per share in cash. On February 26, 2024, the Company repurchased
500,000 shares from an investor at $0.02 per share in cash, these shares were cancelled.
 
OPTIONS
 
The
Company has not granted any options since inception.
 
TRANSFER
AGENT
 
The
Company’s transfer agent is Continental Stock Transfer & Trust, Co., 1 State Street, 30th Floor, New York, NY 10004.
 
ITEM
6. SELECTED FINANCIAL DATA
 
Not
applicable to a “smaller reporting company” as defined in Item 10(f)(1) of SEC Regulation S-K.
 

13
 

 
ITEM
7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
 
The
following discussion of our financial condition and results of operations for the years ended March 31, 2024, and March 31, 2023, should
be read in conjunction with our consolidated financial statements and the notes to those statements that are included elsewhere in this
Annual Report on Form 10-K. Our discussion includes forward-looking statements based upon current expectations that involve risks and
uncertainties, such as our plans, objectives, expectations, and intentions. Actual results and the timing of events could differ materially
from those anticipated in these forward-looking statements due to several factors. We use words such as “anticipate,” “estimate,”
“plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,”
“intend,” “may,” “will,” “should,” “could,” and similar expressions to identify
forward-looking statements.
 
OVERVIEW
 
The
Company is a holding entity set to acquire companies with its current focus in the health and wellness industry. The Company is presently
in compounding pharmaceuticals and telemedicine through its wholly owned subsidiaries RxCompound, Peaks, and ESF.
 
RxCompound
is a complete compounding pharmacy. RxCompound is currently
licensed to fulfill prescriptions in 22 states: Delaware, Florida, Pennsylvania, New York, Arizona,
New Jersey, Wisconsin, Minnesota, Rhode Island, Utah, Georgia, Nevada, Massachusetts, Missouri, Iowa, Maryland, Ohio, Colorado, North
Carolina, Maine, Indiana and Illinois. RxCompound is in the application process to obtain licenses in the remaining states in
which it is not yet licensed to fulfill prescriptions. RxCompound is in the application process to obtain licenses in the remaining states
in which it is not yet licensed to fulfill prescriptions. Furthermore, RxCompound recently had its sterile compounding room approved
to operate in late May 2023, to provide sterile products for injection.
 
Peaks
is the telemedicine referral site facilitating asynchronous consultations for branded compound medications prepared at RxCompound. Peaks
is currently positioned to prescribe to all 50 states utilizing third-party consultation services, but only able to fulfill prescriptions
within RxCompound’s licensed states. Peaks will be able to fulfill more states as RxCompound becomes licensed in additional states.
 
ESF
is a favored entity of ETST, effectively being a non-profit organization that was incorporated on February 11, 2019, and is structured
to accept grants and donations to help those in need of assistance in paying for prescriptions.
 

14
 

 
RESULTS
OF OPERATIONS
 
The
following tables set forth summarized cost of revenue information for the year ended March 31, 2024, and for the year ended March 31,
2023, respectively.
 


  
For the Year Ending March 31,  
   
  

  
2024  
2023  
$ Change  
% Change 

Revenue 
$11,953,635  
$48,537  
$11,905,098  
 24,528%

Cost of goods sold 
4,125,139  
26,477  
4,098,662  
 15,480%

Gross Profit 
7,828,496  
22,060  
7,806,436  
 35,387%

 
We
had product sales of $11,953,635 and a gross profit of $7,828,496, representing a gross margin of 65% for the year ended March 31, 2024,
compared with product sales of $48,537 and a gross profit of $22,060 representing a gross margin of 45 % in year end March 31, 2023.
The revenue increase in the year ended on March 31, 2024, compared with the year ended on March 31, 2023, is primarily due to an aggressive
marketing campaign and compounding products in the newly built sterile room, combined with proprietary IT that facilitates clinicians
in sending prescriptions to be fulfilled and tracks shipping in real time.
 
Gross
Margin increase is driven by the Company’s subsidiaries’ increased buying power, which provides the ability to negotiate
better prices on raw active ingredient products.
 
For
the year ended March 31, 2024, the Company had a net income of approximately $812,000 compared to a net loss from continuing operations
of approximately $(365,000) for the year ended March 31, 2023.
 
OPERATING
EXPENSES
 


  
For years ended March 31,  
   
  

  
2024  
2023  
$ Change  
% Change 

Labor Expense 
4,358,917  
97,543  
4,263,399  
 4,371%

Legal &
    Professional Fees 
1,774,182  
605,768  
1,168,414  
 192%

Bank charges 
422,970  
 —  
422,970  
 100%

General and administrative 
166,976  
231,890  
(64,914) 
 (39)%

Depreciation & amortization 
149,749  
 17,491  
125,422  
 717%

Marketing 
25,283  
 8,074  
17,209  
 213%

Utilities 
15,368  
-  
15,368  
 100%

Rent expense office 
10,797  
-  
10,797 
 100%

Miscellaneous 
6,542  
 —  
6,542  
 100%

Insurance 
5,363  
 —  
5,363  
 100%

Total operating expenses 
6,936,147  
$958,743  
$5,972,591  
 622%

  
    
    
    
   

Net Operating Income (Loss) 
$892,349  
$(936,683) 
$1,829,033  
 — 

Other income/expenses 
    
    
    
   

Other income 
 —  
618,711  
(618,711) 
 (100)%

Interest Expenses 
67,207  
47,433  
19,774  
 42%

Total other income/ expenses 
$67,207  
$571,278  
$(504,071) 
 (88)%

Net Income before taxes 
825,142  
(365,405) 
1,190,547  
 (326)%

Income Taxes 
13,003  
 —  
 —  
 — 

Net Income(Loss) 
$812,139  
$(365,405) 
$1,177,544  
 322%

Earnings per share common and diluted 
 0.003  
 (0.003) 
 0.006  
 187%

 

15
 

 
Marketing
expenses totaled $25,283 for the twelve months ended March 31, 2024, an increase of $17,209 from $8,074 for the twelve months ended March
31, 2023. This increase is primarily related to the Company pushing online sales through social media marketing, and search engines.
 
Labor
expense increased from $97,543 to $4,358,917 primarily because of the officer compensation and the need to hire additional employees.
 
Bank charges were $422,970, this is related to merchant fees, associated
with the increase in sales.
 
Legal
and professional fees totaled $1,774,182 for the twelve months ended March 31, 2024, an increase of $1,168,414 from $605,768 for the
prior period ended March 31, 2023. The increase in legal and professional fees is due to contracting territory managers to help service
our accounts, totaling $1,499,500 in consulting fees. Legal fees came down $513,386 or 93%, while other professional fees increased $196,257.
This includes recruiting, auditing and accounting.
 
General
and administrative expenses decreased from $231,890 for the year ended March 31, 2023, to $166,976 for the year ended March 31, 2024. The decrease was primarily due for the
need to hire outside consulting firms to support the rapid growth of the subsidiaries as we could not hire fast enough to maintain customer
satisfaction. Therefore, the company’s internal expenses decreased, while our external costs (mainly Consulting) increased significantly
to $1,499,500.
 
We
are a smaller reporting company, as defined by 17 CFR § 229.10(f)(1). We do not consider the impact of inflation and changing prices
as having a material effect on our net sales and revenues and on income from our operations for the previous two years or on continuing
operations going forward.
 
INTEREST
EXPENSE
 
Interest
expenses increased to $67,207 in the Fiscal Year Ending March 31, 2024, compared with $47,433 in Fiscal Year Ending March 31, 2023.
 
INCOME
TAX
 
Estimated
taxes were calculated using the 2023 federal tax rate of 21%. We account for income taxes under the asset and liability method,
which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have
been included in the financial statements. Under this method, we determine deferred tax assets and liabilities on the basis of the
differences between the financial statement and tax bases of assets and liabilities by using enacted tax rates in effect for the
year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is
recognized in income in the period that includes the enactment date.
 
NON-GAAP
FINANCIAL MEASURES
 
We
use Adjusted EBITDA internally to evaluate our performance and make financial and operational decisions that are presented in a manner
that adjusts from their equivalent GAAP measures or that supplements the information provided by our GAAP measures. Adjusted EBITDA is
defined by us as EBITDA (net income (loss) plus depreciation expense, amortization expense, interest and income tax expense, minus income
tax benefit), further adjusted to exclude certain non-cash expenses and other adjustments as set forth below. We use Adjusted EBITDA
because we believe it more clearly highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial
measures, since Adjusted EBITDA eliminates from our results specific financial items that have less bearing on our core operating performance.
 
We
use Adjusted EBITDA in communicating certain aspects of our results and performance, including in this Annual Report, and believe that
Adjusted EBITDA, when viewed in conjunction with our GAAP results and the accompanying reconciliation, can provide investors with greater
transparency and a greater understanding of factors affecting our financial condition and results of operations than GAAP measures alone.
In addition, we believe the presentation of Adjusted EBITDA is useful to investors in making period-to-period comparison of results because
the adjustments to GAAP are not reflective of our core business performance.
 
Adjusted
EBITDA is not presented in accordance with, or as an alternative to, GAAP financial measures and may be different from non-GAAP measures
used by other companies. We encourage investors to review the GAAP financial measures included in this Annual Report, including our consolidated
financial statements, to aid in their analysis and understanding of our performance and in making comparisons.
 

16
 

 
BALANCE
SHEETS & CASH FLOWS STATEMENTS
 


  
As of March 31, 

  
2024  
2023 

ASSETS: 
    
   

Current Assets 
    
   

Cash 
$697,721  
$35,756 

Accounts Receivable 
235,423  
 — 

Deposits 
9,352  
   

Inventory 
315,738  
10,260 

Total Current Assets 
1,258,234  
46,016 

Non-Current Assets 
    
   

Property and Equipment 
135,352  
143,213 

Right of use asset, net 
156,517  
200,674 

Goodwill 
2,302,792  
2,302,792 

Intangible assets, net 
28,441  
35,276 

Total non-current assets 
2,623,102  
2,681,955 

TOTAL ASSETS 
$3,881,336  
$2,727,971 

LIABILITIES AND EQUITY: 
    
   

Liabilities 
    
   

Accounts Payable 
$530,724  
$517,137 

Accrued Expenses 
854,719  
 117,193 

Current portion of loans & obligations 
 30,592  
604,767 

Current portion of operating lease obligations 
70,487  
68,188 

Total Current Liabilities 
1,486,522  
1,307,285 

Long-Term Liabilities 
    
   

Lease Liability less current maturities 
84,950  
96,743 

SBA Loans 
 —  
204,408 

Equipment Loans and Obligations non-current 
60,559  
  

Total Long-Term Liabilities 
145,509  
301,151 

Total Liabilities 
1,632,031  
1,608,436 

Stockholders’ Equity 
    
   

Additional Paid In Capital 
31,593,399  
31,303,138 

Common stock, par value $0.001 per share, 750,000,000 shares authorized; 309,981,819 and 282,611,083 shares issued and outstanding
    as of March 31, 2024, and March 31, 2023, respectively 
309,982  
282,612 

Preferred stock, par value $0.001 per share, 1,000,000 shares authorized; 1,000,000 and 1,000,000 shares issued and outstanding
    as of March 31, 2024, and March 31, 2023, respectively 
1,000  
1,000 

Accumulated Deficit 
(29,655,076) 
(30,467,215)

Total Stockholders’ Equity 
2,249,305  
1,119,535 

TOTAL LIABILITIES AND EQUITY 
$3,881,336  
$2,727,971 

 

17
 

 
A
summary of our changes in cash flows & Statement of Financial Position for the years ended March 31, 2024, and 2023, is provided
below:
 
The
Company had $697,721 in Cash for the period ended March 31, 2024, compared with $35,756 for the same period ended March 31, 2023.
 
The
current assets position has improved significantly, the Company has $315,738 of inventory and $235,423 in accounts receivable as of March
31, 2024, compared to $10,260 and $0 as of March 31, 2023.
 
The
Company made an additional purchase of equipment to support its operations in the amount of $26,520 during the year ended March 31, 2024.
 
The
Company had $530,724 in Accounts Payable for the period ended March 31, 2024, compared with $517,137 for the same period ended March
31, 2023.
 
Total
current liabilities increased from $1,307,285 to $1,486,522, this is primarily due to executive compensation and merchant fees being
accrued and settled the following month.
 
Long
term liabilities decreased $242,012, or 62%, due to long term debt being paid off.
 
The
Company had a Stockholders Equity of $2,249,305 for the period ended March 31, 2024, compared with $1,119,535 of Stockholders Equity
for the same period ended March 31, 2023. This improvement is primarily due to Net income of approximately 812,000 and stock issuances.
 
STATEMENT
OF CASH FLOWS
 



  
For the Years Ending March 31, 

  
2024  
2023 

Net cash used in operating activities 
$1,206,371  
$(1,013,128)

Net cash used in investing activities 
 (26,520) 
 - 

Net cash used in financing activities 
 (517,886) 
 1,016,568 

Net increase (decrease) in cash and cash equivalents 
 661,965  
 3,440 

Impact of acquisition 
 —  
 5,374 

Cash and cash equivalents at beginning of the period 
 35,756  
 26,942 

Cash and cash equivalents at end of the period 
$697,721  
$35,756 

 

18
 

 
CASH
FLOWS FROM OPERATING ACTIVITIES
 
The
Company’s net cash from operating activities was $1,206,371 for Fiscal Year Ending March 31, 2024, and $(1,013,128) Fiscal Year
Ending March 31, 2023.
 
CASH
FLOWS FROM INVESTING ACTIVITIES
 
During
the Fiscal Year ending March 31, 2024, and March 31, 2023, the Company used $(26,520) in investing activities and $0, respectively.
 
CASH
FLOWS FROM FINANCING ACTIVITIES
 
Net Cash used in financial activities was $(517,886).
 
During
the Fiscal Year ending March 31, 2024, the Company bought 5,200,000 shares of common stock for an average price of $0.034 per share,
or an aggregate amount of $178,000. The shares were cancelled.
 
Promissory
note in the amount of $250,000, and SBA Loans of approximately $204,000 plus interest were paid off during the Fiscal Year Ending March 31, 2024.
 
FUTURE
FINANCING
 
The
company does not anticipate needing any future financing, unless it undertakes an acquisition.
 
STOCK
BASED COMPENSATION
 
On
August 1, 2023, the Company’s subsidiary, RxCompound, entered into an agreement with its chief pharmacist, Shibu John. Under the
terms of the employment agreement Mr. John was issued 300,000 shares of Company’s restricted common stock at par value as additional
compensation.
 
RECENT
ACCOUNTING PRONOUNCEMENTS
 
The
company has assessed the impact of recent pronouncements in the preparation of Consolidated Financial Statements and their impact has
been disclosed in note 2.
 
OFF-
BALANCE SHEET ARRANGEMENTS
 
None.
 
ITEM
7A. QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK
 
Not
applicable to a “smaller reporting company” as defined in Item 10(f)(1) of Regulation S-K.
 
ITEM
8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
 
The
financial statements required by this item are set forth at the pages indicated in Part IV, Item 15(a)(1) of this Annual Report.
 


19
 

 
EARTH
SCIENCE TECH, INC. AND SUBSIDIARIES
 
Table
of Contents
 


Report of Independent Registered Public Accounting Firm
F-1

 
 

Consolidated Balance Sheets as of March 31, 2024, and March 31, 2023
F-3

 
 

Consolidated Statements of Operations for the Years Ended March 31, 2024, and March 31, 2023
F-4

 
 

Consolidated Statements of Changes in Shareholders’ Equity for the Years ended March 31, 2024, and 2023
F-5

 
 

Consolidated Statements of Cash Flows for the Years Ended March 31, 2024, and March 31, 2023
F-6

 
 

Notes for the Consolidated Financial Statements
F-7

 

20
 

 
 
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
To
the Board of Directors and
Stockholders’
of Earth Science Tech, Inc.
 
Opinion
on the Financial Statements
 
We
have audited the accompanying consolidated balance sheet of Earth Science Tech, Inc. and its Subsidiaries (the Company) as of March 31, 2024, and the related consolidated statements of operations, stockholders’ equity, and cash flows for the year ended March 31, 2024, and the related consolidated notes (collectively referred to as the financial statements). In our opinion, the consolidated
financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2024 and the
results of its operations and its cash flows for year ended March 31, 2024, in conformity with accounting principles generally accepted
in the United States of America.
 
Basis
for Opinion
 
These
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the
Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with
the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.
 
We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit,
we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion
on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
 
Our
audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant
estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides
a reasonable basis for our opinion.
 
Critical
Audit Matters
 
The
critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated
or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial
statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters
does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit
matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
 
We
did not identify any critical audit matters that need to be communicated.
 

Assurance
Dimensions
We
have served as the Company’s auditor since 2024.
Margate, Florida
June
28, 2024
 
ASSURANCE
DIMENSIONS, LLC
also
d/b/a McNAMARA and ASSOCIATES, LLC
TAMPA
BAY: 4920 W Cypress Street, Suite 102 | Tampa, FL 33607 | Office: 813.443.5048 | Fax: 813.443.5053
JACKSONVILLE:
4720 Salisbury Road, Suite 223 | Jacksonville, FL 32256 | Office: 888.410.2323 | Fax: 813.443.5053
ORLANDO:
1800 Pembrook Drive, Suite 300 | Orlando, FL 32810 | Office: 888.410.2323 | Fax: 813.443.5053 
SOUTH FLORIDA: 2000 Banks Road,
Suite 218 | Margate, FL 33063 | Office: 754.800.3400 | Fax: 813.443.5053
www.assurancedimensions.com

“Assurance
Dimensions” is the brand name under which Assurance Dimensions, LLC including its subsidiary McNamara and Associates, LLC (referred
together as “AD LLC”) and AD Advisors, LLC (“AD Advisors”), provide professional services. AD LLC and AD Advisors
practice as an alternative practice structure in accordance with the AICPA Code of Professional Conduct and applicable laws, regulations,
and professional standards. AD LLC is a licensed independent CPA firm that provides attest services to its clients, and AD Advisors provide
tax and business consulting services to their clients. AD Advisors, and its subsidiary entities are not licensed CPA firms.
 


F-1
 

 
Report
of Independent Registered Public Accounting Firm
 
To
the shareholders and Board of Directors of Earth Science Tech, Inc.
 
Opinion
on the Consolidated Financial Statements
 
We
have audited the accompanying consolidated financial statements of Earth Science Tech, Inc. as of March 31, 2023, the related statements
of operations, stockholders’ equity (deficit), and cash flows for the year then ended, and the related notes (collectively referred
to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in
all material respects, the financial position of the Company as of March 31, 2023, and the results of its operations and its cash flows
for the year then ended, in conformity with accounting principles generally accepted in the United States.
 
We
also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”),
the Company’s Goodwill and our report dated June 19, 2023, except for the effect of the material weaknesses described in the third
paragraph of that report, as to which the date is February 19, 2024, expressed an adverse opinion thereon.
 
The
Company’s Ability to Continue as a Going Concern
 
The
accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed
in Note 2 to the consolidated financial statements, the Company has suffered negative cash flows and has a significant accumulated deficit.
These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard
to these matters are also described in Note 2. The consolidated financial statements do not include any adjustments that might result
from the outcome of this uncertainty.
 

Basis
for Opinion
 
These
consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion
on the Company’s consolidated financial statements based on our audit. We are a public accounting firm registered with the PCAOB
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
 
We
conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company
is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits,
we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion
on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
 
Our
audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due
to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe
that our audit provides a reasonable basis for our opinion.
 
Critical
Audit Matters
 
Critical
audit matters are matters arising from the current-period audit of the financial statements that were communicated or required to be
communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments.
 
We
determined that there are no critical audit matters.
 

 
R.
Bolko, CPA P.A. (PCAOB ID 6554)
 
We
have served as the Company’s auditor since 2022.
Boca
Raton, FL
June
19, 2023, except the restatement disclosed in Notes of the consolidated financial statements, as which the date is February 19, 2024.
 

F-2
 

 
EARTH
SCIENCE TECH, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
AS OF MARCH 31, 2024, AND 2023
 


  
2024  
2023 

  
As of March 31, 

  
2024  
2023 

ASSETS 
    
   

Current Assets 
    
   

Cash 
$697,721  
$35,756 

Accounts Receivable 
 235,423  
 — 

Deposits 
9,352  
 — 

Inventory 
315,738  
10,260 

Total Current Assets 
1,258,234  
46,016 

Non-Current Assets 
   
   

Property and Equipment, net 
135,352  
143,213 

Right of use asset, net 
156,517  
200,674 

Goodwill 
2,302,792  
2,302,792 

Intangible assets, net 
28,441  
35,276 

TOTAL ASSETS 
$3,881,336  
$2,727,971 

LIABILITIES AND EQUITY 
    
   

Liabilities 
    
   

Accounts Payable 
$530,724  
$517,137 

Accrued Expenses and other payables 
854,719  
 117,193 

Current portion of loans & obligations 
30,592  
604,767 

Current portion of operating lease obligations 
70,487  
 68,188 

Total Current Liabilities 
1,486,522  
1,307,285 

Long-Term Liabilities 
   
   

Lease Liability less current maturities 
84,950  
96,743 

SBA Loans 
 —  
204,408 

Equipment Loans and Obligations non-current 
60,559  
— 

Total Liabilities 
1,632,031  
1,608,436 

Commitment and Contingencies (Note 10) 
    
   

Stockholders’ Equity 
   
   

Additional Paid In Capital 
31,593,399  
31,303,138 

Common stock, par value $0.001 per share, 350,000,000 shares authorized; 309,981,819 and 282,611,083 shares issued and outstanding as of March 31, 2024, and March 31, 2023, respectively 
309,982  
282,612 

Preferred stock, par value $0.001 per share, 1,000,000 shares authorized; 1,000,000 and 1,000,000 shares issued and outstanding as of March 31, 2024, and March 31, 2023, respectively 
1,000  
1,000 

Accumulated Deficit 
(29,655,076) 
(30,467,215)

Stockholders’ Equity 
2,249,305  
1,119,535 

TOTAL LIABILITIES AND EQUITY 
$3,881,336  
$2,727,971 

 

F-3
 

 
EARTH SCIENCE TECH, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR YEARS ENDED MARCH
31, 2024, AND 2023
 


  
2024  
2023 

  
2024  
2023 

  
   
  

Revenue 
$11,953,635  
$48,537 

Cost of Goods Sold (exclusive of depreciation shown separately below) 
4,125,139  
26,477 

Gross Profit 
7,828,496  
22,060 

Expenses 
    
   

Labor Expense 
4,358,917  
95,520 

Legal & Professional Fees 
1,774,182  
605,768 

Bank
                                            Charges 
422,970  
— 

General
                                            and Administrative Expenses 
166,976  
231,890 

Depreciation
                                            and amortization 
149,749  
17,491 

Marketing 
25,283  
8,074 

Utilities 
15,368  
— 

Rent expense 
10,797  
— 

Miscellaneous 
6,542  
— 

Insurance 
5,363  
— 

Total Expenses 
$6,936,147  
$958,743 

Net Operating Income/(Loss) 
892,349  
(936,683)

Other income/expenses 
    
   

Other income 
 —  
 618,711 

Interest Expenses 
(67,207) 
(47,433)

Total other income/ expenses 
(67,207) 
571,278 

Net Income/(loss) before taxes 
825,142  
(365,405)

Income Taxes 
13,003  
 — 

Net Income/Loss 
$812,139  
$(365,405)

Profit/(Loss) per common share-Basic and Diluted 
$0.003  
$(0.003)

  
    
   

Weight average number of shares outstanding 
 309,687,386  
 145,867,024 

 

F-4
 

 

EARTH
SCIENCE TECH, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF STOCKHOLDERS’ (DEFICIT) EQUITY
FOR
YEARS ENDED MARCH 31, 2024, AND 2023
 



  
    
    
    
    
    
    
   

  
Common
    Stock  
Preferred
    Stock  
Additional
    paid in  
Accumulated
deficit  
  

Description 
Shares  
Amount  
Shares  
Amount  
Capital  
(Restated)  
Total 

Balance at March
    31, 2022 
 53,851,966  
 53,853  
 -   
 -  
 28,264,452  
 (30,123,718) 
$(1,805,413)

Common
    stock issued for cash 
 87,246,677  
 87,247  
 -  
  -  
 476,953  
 -  
$564,200 

Common
    stock issued for operating claims 
 1,700,000  
 1,700  
 -  
  -  
 -  
  -  
$1,700 

Common
    stock issued for officer’s compensation 
 3,500,000  
 3,500  
 -  
  -  
  -  
  -  
 3,500 

Preferred
    stock B issued for officer’s compensation 
    
    
 1,000,000  
 1,000  
  -  
 -  
 1,000 

Common
    stock issued for debt settlement 
 85,612,440  
 85,612  
 -  
  -  
 736,533  
  -  
 822,145 

Common
    stock issued for acquisition of RX and Peaks 
 50,700,000  
 50,700  
 -  
  -  
 1,825,200  
  -  
$1,875,900 

Net Profit/(Loss) 
    
    
    
    
    
 (365,405  
 (365,405)

Balance at March 31, 2023 
 282,611,083  
$282,612  
 1,000,000  
$1,000  
$31,303,138  
$(30,467,215) 
$1,119,535 

 


  
Shares   
Amount   
Shares   
Amount  
APIC   
 Earnings  
Total 

  
Common Stock  
Preferred Stock  
   
Accumulated  
  

  
Shares   
Amount   
Shares   
Amount  
APIC   
 Deficit  
Total 

Balance at March 31, 2023 
 282,611,083  
$282,612  
 1,000,000  
$1,000  
$31,303,138  
$(30,467,215) 
$1,119,535 

Balance  
 282,611,083  
$282,612  
 1,000,000  
$1,000  
$31,303,138  
$(30,467,215) 
$1,119,535 

Common stock issued for cash 
 18,864,423  
 18,864  
 -  
 -  
 91,467  
 -  
 110,331 

Common stock buyback 
 (5,200,000) 
 (5,200) 
   
    
 (172,800) 
    
 (178,000)

Stock -based compensation 
 300,000  
 300  
 -  
 -  
 -  
 -  
 300 

Common stock issued for conversion of debt 
 13,406,313  
 13,406  
    
    
 371,594  
    
 385,000 

Net Income 
   
 -  
   
 -  
 -  
 812,139  
 812,139 

Balance at March 31, 2024 
 309,981,819  
$309,982  
 1,000,000  
$1,000  
$31,593,399  
$(29,655,076) 
$2,249,305 

Balance 
 309,981,819  
$309,982  
 1,000,000  
$1,000  
$31,593,399  
$(29,655,076) 
$2,249,305 

 

F-5
 

 
EARTH
SCIENCE TECH, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
FOR YEARS ENDED MARCH 31, 2024, AND 2023
 


  
2024  
2023 

  
2024  
2023 

  
   
  

Cash flows from operating activities: 
    
   

Net Income (Loss) 
$812,139  
$(365,405)

Adjustments to reconcile net income to net cash provided (used) by operating activities: 
    
   

Stock-based compensation 
300  
4,500 

Gain on payable settlement 
—  
(618,711)

Depreciation and amortization 
149,749  
17,491 

  
   
   

Changes in operating assets and liabilities: 
   
   

Accounts Receivable 
(235,423) 
 — 

Deposits 
(9,352) 
 — 

Inventory 
(305,478) 
 — 

Lease liability, net 
(73,870) 
 — 

Accrued settlement 
—  
235,947 

Accounts payable and accrued expenses 
868,306  
(286,949)

Net cash provided (used) by operating activities 
1,206,241  
(1,013,128)

  
    
   

Cash flows from investing activities: 
    
   

Purchases of property and equipment 
(26,520) 
 — 

Net cash used in investing activities 
(26,520) 
 — 

  
    
   

Cash flows from financing activities: 
    
   

Net proceeds from issuance of common stock 
110,331  
564,200 

Repurchase of common stock 
(178,000) 
 - 

Payments on debt obligations 
(450,217) 
(97,612)

Proceeds from loans and notes 
—  
549,980 

Net Cash used in Financing Activities 
(517,886) 
1,016,568 

Net increase (decrease) in cash and cash equivalents 
661,965  
3,440 

Impact of acquisition 
—  
5,374 

Cash and cash equivalents at beginning of the period 
35,756  
26,942 

  
    
   

Cash and cash equivalents at end of the period 
$697,721  
$35,756 


 
Supplemental
Disclosure of Cash Flow Information
 


Cash paid for interest 
$67,207  
$47,433 

Cash paid for income taxes 
$-  
$- 

  
$   
$  

Non-Cash Transactions 
$   
$  

Common stock issued for acquisition of subsidiaries 
$-  
$1,875,900 

Common stock issued for debt settlement 
$- 
$822,145 

Common stock issued for operating claims 
$-  
$1,700 

Common stock issued for officer’s compensation 
$- 
$3,500 

Preferred B stock issued for officer’s compensation 
$-  
$1,000 

Common stock issued on conversion of notes payable 
$385,000  
$- 

  

F-6
 

 
Note
1 — Organization and Nature of Operations
 
Earth
Science Tech, Inc. (“ETST” or the “Company”) was incorporated under the laws of the State of Nevada on April
23, 2010. The Company subsequently changed its domicile to the State of Florida on June 27, 2022. As of November 8, 2022, the Company
is a holding entity set to acquire companies with its current focus in the health and wellness industry. The Company is presently in
compounding pharmaceuticals and telemedicine through its wholly owned subsidiaries RxCompoundStore.com, LLC. (“RxCompound”),
Peaks Curative, LLC. (“Peaks”), and Earth Science Foundation, Inc. (“ESF”).
 
RxCompound
is a complete compounding pharmacy. RxCompound is currently
licensed to fulfill prescriptions in 22 states: Delaware, Florida, Pennsylvania, New York, Arizona,
New Jersey, Wisconsin, Minnesota, Rhode Island, Utah, Georgia, Nevada, Massachusetts, Missouri, Iowa, Maryland, Ohio, Colorado, North
Carolina, Maine, Indiana and Illinois. RxCompound is in the application process to obtain licenses in the remaining states in
which it is not yet licensed to fulfill prescriptions.
 
Peaks
is a telemedicine referral site focused on overall health and wellness for men and women. Peaks’ orders are exclusively fulfilled
by RxCompound. Patients who order Peaks via monthly subscription receive their refills automatically. The company intends to expand offerings
to include over the counter (“OTC”) (non-prescription) products such as supplements and topicals. .
 
ESF
is a favored entity of ETST, effectively being a non-profit organization that was incorporated on February 11, 2019, and is structured
to accept grants and donations to help those in need of assistance in paying for prescriptions.
 
NOTE
2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Basis
of presentation
 
The
accompanying consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United
States of America (“US GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).
 
Principles
of consolidation
 
The
accompanying consolidated financial statements include all the accounts of the Company and its wholly owned subsidiaries RxCompound,
Peaks and ESF.
 

F-7
 

 
Use
of estimates and assumptions
 
The
preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of
America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. The areas requiring significant estimates are impairment of goodwill, provision for taxation, useful life of depreciable
assets, useful life of intangible assets, contingencies, and going concern assessment. The estimates and underlying assumptions are reviewed
on an ongoing basis. Actual results could differ from those estimates.
 
Impairment
of Long-Lived Assets
 
The
Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset
may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the
assets. Whenever any such impairment exists, an impairment loss will be recognized for the amount by which the carrying value exceeds
the fair value. As of and for the years ended March 31, 2024 and 2023 no such impairment was needed.
 
Cash
and cash equivalents.
 
Cash
and cash equivalents include all highly liquid debt instruments with original maturities of twelve months or less, which secure any
corporate obligations. As of March 31, 2024, and March 31, 2023, the Company held a cash balance of $697,721 and
$35,756 respectively
As of March 31, 2024, the organization’s balances exceeded federally insured limits by approximately $266,090.
 
Accounts
Receivable.
 
Upon
adoption of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,
the presentation and disclosure of receivables will change significantly. ASU 2016-13 introduces a new model for recognizing credit losses
on financial instruments based on an estimate of current expected credit losses. The ASU also provides updated guidance regarding the
impairment of available-for-sale debt securities and includes additional disclosure requirements.
 
Additionally,
ASU 2022-02 eliminates the accounting guidance for TDRs in ASC 310-40, Receivables - Troubled Debt Restructurings by Creditors, but
introduces new disclosure requirements for loan modifications with borrowers experiencing financial difficulty. The elimination of TDRs
can only be applied by entities that have adopted the CECL model introduced by ASU 2016-13.
 
The
Company has adopted the new standard ASC-326- CECL to account for current credit losses, the Company has analyzed its accounts
receivable, based on historical and customer experience, economic trends, and future estimates. Accounts receivables are recorded for pharmaceuticals picked up or shipped as of March 31, 2024, it is expected to be
collected within twelve months in its entirety, no reserve was necessary.
 
SCHEDULE
OF ACCOUNTS RECEIVABLE 


  
2024  
2023 

  
As of March 31, 

  
2024  
2023 

Accounts Receivable 
$235,423  
$- 

 

F-8
 

 
Revenue
recognition
 
The
Company has implemented ASC 606, Revenue from Contracts with Customers for revenue recognition by incorporating the necessary changes
in systems and processes. These changes included the development of new policies based on the five-step model provided in the new revenue
standard, ongoing contract review requirements, and gathering of information provided for disclosures. Revenue is recognized at this
point in time.
 
The
Company recognizes revenue from product sales or services rendered when control of the promised goods is transferred to our customers
in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services. To achieve this
core principle, we apply the following five steps: identify the contract with the client, identify the performance obligations in the
contract, determine the transaction price, allocate the transaction price to performance obligations in the contract and recognize revenue
when or as the Company satisfies a performance obligation, such as shipping with a third party, or upon pick up of the pharmaceuticals.
 
Disaggregated
Revenue
 
The
Company disaggregates revenue from contracts with customers by category — core and non-core, as it believes it best depicts how
the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
 
The
Company’s disaggregated revenue by category is as follows:
SCHEDULE OF DISAGGREGATED REVENUE 


  
    
   

  
For the Years Ending March 31, 

  
2024  
2023 

Core: 
    
   

Sale of Pharmaceutical products - RxCompound 
$11,924,804  
$44,099 

Total core revenue, net 
$11,924,804  
$44,099 

Non-Core: 
 —  
 — 

Services – Peaks 
$28,831  
$4,438 

Total revenue, net 
$11,953,635  
$48,537 

 
The
Company currently has 3 large customers, each representing 14 %, 9% and 9% of revenue.

SCHEDULE
OF REVENUE BY MAJOR CUSTOMERS 


  
2024  
2023 

  
For the Years Ending March 31, 

  
2024  
2023 

Accounts Receivables 
$235,423  
$         - 

 
Inventory
 
The
Company has its inventories stated at a lower cost (on first in, first out (FIFO) method) or market value basis. A reserve is established
if necessary to reduce excess or obsolete inventories to their realizable value. The stated cost consists of finished products. Reserves,
if necessary, are recorded to reduce inventory to market value based on assumptions about consumer demand, current inventory levels and
product life cycles for the various inventory items. These assumptions are evaluated annually and are based on the Company’s business
plan and on feedback from customers and the product development team. As of March 31, 2024, and March 31, 2023, the inventory reserves
were not material.
 
The
Company has three main suppliers, each accounting 32%, 13% and 6% of the company’s vendor purchases.
 
SCHEDULE
OF INVENTORY 


  
2024  
2023 

  
As of March 31, 

  
2024  
2023 

Raw materials 
$266,776  
   

Finished goods 
 48,962  
 10,260 

Inventory 
$315,738  
$10,260 

 
Cost
of Goods Sold
 
Components
of cost of goods sold include product costs, consumables, shipping costs to customers and any inventory adjustments.
 
Shipping
and Handling
 
Costs
incurred by the Company for shipping and handling are included in costs of goods sold.
 

F-9
 

 
Related
Parties
 
The
Company pays the employee compensation for Giorgio R. Saumat and Mario Tabraue to their respective, solely owned LLCs, Point96
Consulting, LLC and Tabraue Consulting, LLC.
 
The
Company follows ASC 850-10, Related Parties, for the identification of related parties and disclosure of related party transactions.
Pursuant to Section 850-10-20, the related parties include: (a) affiliates of the Company (“Affiliate” means, with respect
to any specified person, any other person that, directly or indirectly through one or more intermediaries, controls, is controlled by
or is under common control with such person, as such terms are used in and construed under Rule 405 under the Securities Act); (b) entities
for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value
Option Subsection of Section 825-10-15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit
of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners
of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly
influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from
fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies
of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other
to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.
 
Income
taxes
 
The
Company accounts for income taxes under ASC 740, Income Taxes. Under ASC 740, deferred tax assets and liabilities are recognized for
the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities
and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and
liabilities of a change in tax rates is recognized in income in the period, which includes the enactment date. Deferred tax assets are
reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of or all the deferred
tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on
the date of enactment.
 
Net
income per common share
 
The
Company follows ASC 260 to account for earnings per share. Basic earnings per common share calculations are determined by dividing net
results from operations by the weighted average number of shares of common stock outstanding during the year. Diluted loss per common
share calculation is determined by dividing net results from operations by the weighted average number of common shares and diluted common
share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the
computation. For the years ended March 31, 2024 and 2023, the Company did not have any
antidilutive equity instruments.
 

F-10
 

 
Goodwill

 
Goodwill
represents the excess of the aggregate purchase price over the fair value of the net assets acquired in a purchase business combination.
Goodwill is reviewed for impairment on an annual basis, or more frequently if events or changes in circumstances indicate that the carrying
amount of goodwill may be impaired. In conducting its annual impairment test, the Company first reviews qualitative factors to determine
whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If factors indicate that
the fair value of the reporting unit is less than its carrying amount, the Company performs a quantitative assessment, and the fair value
of the reporting unit is determined by analyzing the expected present value of future cash flows. If the carrying value of the reporting
unit continues to exceed its fair value, the fair value of the reporting unit’s goodwill is calculated and an impairment loss equal
to the excess is recorded.
 
Stock
Based Compensation
 
The
Company applies the fair value method of ASC 718, Compensation-Stock Compensation, in accounting for its stock-based compensation. These
standards state that compensation cost is measured at the grant date based on the value of the award and is recognized over the service
period, which is usually the vesting period, if any. The Company uses the Black-Scholes option pricing model to determine the fair value
of its stock, stock option and warrant issuance. The determination of the fair value of stock-based payment awards on the date of grant
using an option-pricing model is affected by the Company’s stock price, as well as assumptions regarding a few complex and subjective
variables. These variables include the Company’s expected stock price, volatility over the term of the awards, actual employee
exercise behaviors, risk-free interest rate and expected dividends. The company issued common stock for services provided by officers
and others, during the year ended March 31, 2024. However, no stock-based commitments were outstanding as of March 31, 2024, and 2023.
 
Cash
flows reporting
 
The
Company follows ASC 230 to report cash flows. This standard classifies cash receipts and payments according to whether they stem from
operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method
(“Indirect method”) as defined by this standard to report net cash flow from operating activities by adjusting net income
to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts
and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income
that do not affect operating cash receipts and payments. The Company reports separately information about investing and financing activities
not resulting in cash receipts or payments in the period pursuant to this standard.
 
Fair
Value
 
FASB
ASC 820, Fair Value Measurements and Disclosures (“ASC 820”) establishes a framework for all fair value measurements
and expands disclosures related to fair value measurement and developments. ASC 820 defines fair value as the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820
requires that assets and liabilities measured at fair value are classified and disclosed in one of the following three categories:
 
Level
1 — Quoted market prices for identical assets or liabilities in active markets or observable inputs,
 

F-11
 

 
Level
2 — Significant other observable inputs that can be corroborated by observable market data; and
 
Level
3 — Significant unobservable inputs that cannot be corroborated by observable market data.
 
The
carrying amounts of cash, accounts payable and other liabilities, accrued expenses and settlement payable approximate fair value because
of the short-term nature of these items.
 
The
fair value of the Company’s debt approximated the carrying value of the Company’s debt as of March 31, 2024, and as of March
31, 2023. Factors that the Company considered when estimating the fair value of its debt included market conditions, liquidity levels
in the private placement market, variability in pricing from multiple lenders and terms of debt.
 
Property
and equipment
 
Property
and equipment are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals
and betterments are capitalized. When property and equipment are retired or otherwise disposed of, the related cost and accumulated
depreciation are removed from the respective accounts, and any gain or loss is included in operations. During the year ended March
31, 2024, RxCompound added various equipment for its hazardous room, to compound hormonal creams. Depreciation on property and
equipment is charged using a straight-line method over the estimated useful life of 5
years.
 
Recently
issued accounting pronouncements
 
We
have considered the impact of the following pronouncements:
 
The
Company has adopted the new standard ASC-326- CECL to account for current credit losses, the Company has analyzed this pronouncement noting no material impact upon adoption.
 
The
FASB recently issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470- 20) and Derivatives and Hedging
– Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an
Entity’s Own Equity, to reduce complexity in applying GAAP to certain financial instruments with characteristics of
liabilities and equity. The guidance in ASU 2020-06 simplifies the accounting for convertible debt instruments and convertible
preferred stock by removing the existing guidance in ASC 470-20, Debt: Debt with Conversion and Other Options, which requires
entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible
debt or preferred stock. The guidance in ASC 470-20 applies to convertible instruments for which the embedded conversion features
are not required to be bifurcated from the host contract and accounted for as derivatives. In addition, the amendments revise the
scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments and embedded features that are both
indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for
equity classification. These amendments are expected to result in more freestanding financial instruments qualifying for equity
classification (and, therefore, not accounted for as derivatives), as well as fewer embedded features requiring separate accounting
from the host contract. The amendments in ASU 2020-06 further revise the guidance in ASC 260, Earnings Per Share, to require
entities to calculate diluted earnings per share (EPS) for convertible instruments by using the if-converted method. In addition,
entities must presume share settlement for purposes of calculating diluted EPS when an instrument may be settled in cash or shares.
The amendments in ASU 2020-06 are effective for public entities for fiscal years beginning after December 15, 2021, with early
adoption permitted (for an “emerging growth company,” beginning after December 15, 2023). The Company has assessed the
impact this standard will have on the Company’s consolidated financial statements. No material adjustments will be
required.
 

F-12
 

 
Intangible
assets 
 
Intangible
assets consist of Peaks telemedicine platform, and the Holding Company’s web domains. Intangible assets with finite lives are amortized
over the estimated useful life of five
years.
 
NOTE 3- INVENTORY
 
The Company
has its inventories stated at a lower cost (on first in, first out (FIFO) method) or market value basis. A reserve is established if
necessary to reduce excess or obsolete inventories to their realizable value. The stated cost consists of finished products. Reserves,
if necessary, are recorded to reduce inventory to market value based on assumptions about consumer demand, current inventory levels and
product life cycles for the various inventory items. These assumptions are evaluated annually and are based on the Company’s business
plan and on feedback from customers and the product development team. As of March 31, 2024, and March 31, 2023, the inventory reserves
were not material.
SCHEDULE
OF INVENTORIES
 


  
    
   

  
As of March 31, 

  
2024  
2023 

Raw materials 
$266,776  
$- 

Finished goods 
 48,962  
 10,260 

Inventory 
$315,738  
$10,260 


 
NOTE
4 – PROPERTY AND EQUIPMENT, NET
 SCHEDULE OF PROPERTY AND EQUIPMENT


  
    
   

  
As of March 31, 

  
2024  
2023 

Equipment – cost 
$176,602  
$150,082 

Less: Accumulated depreciation 
 (41,250) 
 (6,869)

Property and Equipment, Net 
$135,352  
$143,213 

 
Depreciation
expenses for the years ended March 31, 2024, and March 31, 2023, were $34,381 and $6,869, respectively.
 

F-13
 

 
NOTE
5- LEASES
 
The
Company treats a contract as a lease when the contract conveys the right to use a physically distinct asset for a period in exchange
for consideration, or the Company directs the use of the asset and obtains substantially all the economic benefits of the asset. These
leases are recorded as right-of-use (“ROU”) assets and lease obligation liabilities for leases with terms greater than 12
months. ROU assets represent the Company’s right to use an underlying asset for the entirety of the lease term. Lease liabilities
represent the Company’s obligation to make payments over the life of the lease. A ROU asset and a lease liability are recognized
at commencement of the lease based on the present value of the lease payments over the life of the lease. Initial direct costs are included
as part of the ROU asset upon commencement of the lease. Since the interest rate implicit in a lease is generally not readily determinable
for the operating leases, the Company uses an incremental borrowing rate to determine the present value of the lease payments. The incremental
borrowing rate represents the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar lease
term to obtain an asset of similar value.
 
The
Company reviews the impairment of ROU assets consistent with the approach applied for the Company’s other long-lived assets. The
Company reviews the recoverability of long-lived assets when events or changes in circumstances occur that indicate that the carrying
value of the asset may not be recoverable. The assessment of possible impairment is based on the Company’s ability to recover the
carrying value of the asset from the expected undiscounted future pre-tax cash flows of the related operations. The Company elected the
practical expedient to exclude short-term leases (leases with original terms of 12 months or less) from ROU asset and lease liability
accounts.
 
Supplemental
balance sheet information related to leases were as follows:
SCHEDULE OF SUPPLEMENTAL BALANCE SHEET RELATED TO LEASES 


  
    
   

  
As of March 31, 

  
2024  
2023 

Assets 
   
  

Right of use asset, net 
$156,517  
$200,674 

  
    
   

Operating lease liabilities 
    
   

Current 
 70,487  
 68,188 

Non-current 
 84,950  
 96,743 

Total Lease Liabilities 
$155,797  
$164,931 

 
The
components of lease cost were as follows:
 SCHEDULE OF LEASE COST


  
    
   

  
For the Years Ending March 31, 

  
2024  
2023 

Depreciation 
$108,533  
$15,436 

Interest on lease obligation 
 5,595  
 2,935 

Total lease cost 
$114,128  
$18,372 

 
Lease
term and discount rate were as follows:
 SCHEDULE LEASE TERM AND DISCOUNT RATE


  
For the Years Ending March 31, 

  
2024  
2023 

Weighted average remaining lease term - Operating leases 
 2.25 years  
 3.25
                                            years 

  
    
   

Weighted average discount rate - Operating leases 
 3% 
 3%

 


F-14
 

 

Disclosure
on maturity of undiscounted minimum lease payments (per year)
 SCHEDULE
OF MATURITY UNDISCOUNTED MINIMUM LEASE PAYMENTS


Year ended March 31 
Operating Leases 

2025 
$74,001 

2026 
 74,001 

2026 
 12,334 

Total 
 160,336 

Less interest 
 4,539 

Present value of lease payment 
$155,797 

 
NOTE
6 - INTANGIBLE ASSETS 
 
Intangible
assets, consisted of the following:
 SCHEDULE OF INTANGIBLE ASSETS


  
    
   

  
As of March 31, 

  
2024  
2023 

Telemedicine Platform 
$17,806  
$17,806 

Web Domain 
$19,323  
$19,323 

Accumulated Amortization 
$(8,688) 
$(1,853)

Net Balance 
$28,441  
$35,276 

Amortization expense 
$6,835  
 1,853 

 
NOTE
7- GOODWILL 
 
Goodwill
represents the excess of the aggregate purchase price over the fair value of the net assets acquired in the business combinations as
well as the Goodwill recorded on the acquired subsidiary of RxCompoundStore.com, LLC. On November 08, 2022, the Company acquired 100%
of the outstanding equity shares of RxCompoundStore.com, LLC and Peaks Curative, LLC against the share exchange consideration and recognized
Goodwill.
SCHEDULE OF GOODWILL 


  
As of March 31, 

  
2024  
2023 

RxCompound and Peaks 
$2,302,792  
$2,302,792 

Total 
$2,302,792  
$2,302,792 

 

F-15
 

 
The
Company conducted an impairment test as of March 31, 2024, and March 31, 2023, and no indication of impairment was identified.
 
NOTE
8- ACCOUNTS PAYABLE AND ACCRUED EXPENSES
 
Accounts
payable and accrued expenses consisted of the following:
 SCHEDULE OF ACCOUNTS PAYABLE AND ACCRUED EXPENSES


  
    
   

  
As of March 31, 

  
2024  
2023 

Accounts Payable 
$530,724  
$517,137 

Accrued Expenses (A) 
$854,719  
$117,193 

 
(A)
Accrued Expenses
 
As
of March 31, 2024, accrued expenses included executive
compensation of approximately $650,000,
and merchant fees of approximately $68,000.
 
NOTE
9 – DEBT
 
Loans
Notes Payable consisted of the following
SCHEDULE OF NOTES AND LOANS PAYABLE 


Name 
Total  
Current  
Non-Current 

As of March 31, 2024 
    
    
   

Equipment Finance 
$91,151  
$30,592  
$60,559 

As of March 31, 2023 
    
    
   

SBA Loan 
$209,175  
$4,767  
$204,408 

Revolving Promissory Note 
$250,000  
$250,000  
 — 

Convertible Promissory Note 
$350,000  
$350,000  
 — 

Loans
    Notes Payable 
$809,175  
$604,767  
$204,408 

 
Revolving
Promissory Note in the amount of $250,000 and SBA Loan in the amount of $209,175 were paid off during the year
 
Convertible
promissory Notes in the amount of $200,000
and $150,000
and corresponding accrued interest of $35,000 were converted to common stock as follows:
 
June
5, 2023- Total amount of principal and interest converted $165,000 at an applicable average closing price of $0.0378, discounted after 25%
reduction from average $0.0283, the number of shares to be issued pursuant to the conversion of the note 5,820,106.
 
June
12, 2023- Total amount of principal and interest converted $220,000 at an applicable average 10 closing price of $0.04, discounted after
25% reduction from average $0.029, the number of common stock issued pursuant to the conversion 7,586,207.
 
No
additional debt was incurred during the fiscal year ending March 31, 2024
 

F-16
 

 
For
the years ending March 31, 2024 and 2023, total interest expense for the year was $67,207 and $47,433 respectively.
 
NOTE
10 – ACQUISITION AND RELATED TRANSACTIONS
 
On
or about November 3, 2021 the Company entered into an agreement for the purchase of RxCompoundStore.com, LLC and Peaks Curative, LLC
through the purchase of 100% of the outstanding equity securities of both entities. The agreement was amended on November 8, 2022, to
incorporate share exchange consideration only. The Company’s acquisition of RxCompound was consummated on November 8, 2022, along
with Peaks; however, RxCompound completed its PCAOB audit on February 3, 2023, which was considered as its acquisition date.
 
Subsidiaries
operating results were consolidated according to the above acquisition dates. Shortly after entering into the purchase agreement with
RxCompoundstore.com and Peaks Curative, the Company shifted from formulating and selling CBD products to formulating pharmaceutical products
and topicals for sale through its accounts and the telemedicine platform of Peaks Curative. Consequently, in
the year ended March 31, 2023, no revenue was recognized by the Holding Company but generated revenue of $48,537 through RxCompound and
Peaks.
 
As
consideration for the acquisition, an aggregate of 50,700,000 shares of the Company’s Common Stock of the Earth Science Tech, Inc
were issued to the shareholders of subsidiaries in following proportion:
 
 SCHEDULE
OF AN AGGREGATE SHARES OF THE COMMON STOCK


Shareholder of Subsidiaries 
Shares of Common Stock 

  
  

Mario G. Tabraue 
 9,750,000 

Jose Rodriguez 
 19,750,000 

Mario Portela 
 17,000,000 

Adrian Raventons 
 2,000,000 

Frank Garcia 
 2,000,000 

Sam Garcia 
 200,000 

Total 
 50,700,000 

 
NOTE
11 – COMMITMENTS AND CONTINGENCIES
 
Commitments
and contingencies
 
The Company follows ASC 450 to account for contingencies.
Certain conditions may exist as of the date the consolidated financial statements are issued, which may result in a loss to the Company,
but which will only be resolved when one or more future events occur or fail to occur. This may result in contingent liabilities that
are required to be accrued or disclosed in the financial statements. The Company assesses such contingent liabilities, and such assessment
inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the
Company or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings
or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.
 
If the assessment of a contingency indicates that
it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would
be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potential material loss contingency
is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an
estimate of the range of possible losses, if determinable and material, would be disclosed.
 
Loss contingencies considered remote are generally
not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon
information available at this time, that these matters will have a material adverse effect on the Company’s consolidated financial
position, results of operations, or cash flows. However, there is no assurance that such matters will not materially and adversely affect
the Company’s business, financial position, and results of operations or cash flows.
 
Legal
Matters:
 
From
time to time and in the course of business, we may become involved in various legal proceedings seeking monetary damages and other relief.
The amount of the ultimate liability, if any, from such claims cannot be determined. As of the date hereof, there are no legal claims
currently pending or, to our knowledge, threatened against us or any of our officers or directors in their capacity as such or against
any of our properties that, in the opinion of our management, would be likely to have a material adverse effect on our financial position,
results of operations or cash flows.
 
On
September 19, 2023, one of the Company’s subsidiaries, RxCompoundStore.Com, LLC was sued in Federal court by Eli Lilly. RxCompoundStore.Com,
LLC was able to successfully defend itself and on April 10, 2024, the case was dismissed with prejudice.
 
On February 8th, 2023 the Company was made aware of a complaint against it filed in Canada by the AMF (Quebec Securities
Regulator). The complaint was based on actions by previous management. The company settled the complaint with the AMF on May 23rd, 2023
by paying a fine of $10,000 CAD ($7,452.00 USD) and agreeing not to sell any securities in Quebec
 
Employment
and Consulting Agreements:
 
On
September 29, 2023, the Company adopted a new officer compensatory plan arrangement superseding its prior arrangement. For the
officers Giorgio R. Saumat, the Company’s CEO and Chairman of the Board shall be compensated twenty one percent of the
Company’s monthly revenue. For the officer Mario G. Tabraue, the Company’s President and Director of the Board shall
receive ten and a half percent of the monthly revenue. Commencing on October 1, 2023, within a twelve-month term, both Officers
shall be paid on the first of the month, based on the preceding month’s revenue as long as the Company increases its cash
position quarter over quarter. In the event that the Company does not increase its cash position, the arrangement must be
renegotiated and there will be no payment at the beginning of the new quarter. Moreover, both officers have agreed to waive all
rights to back pay and compensation for the work done in the Company prior to September 30, 2023. As
of March 31, 2024 a total of $652,220 was accrued for executive compensation for Giorgio R. Saumat and Mario G. Tabraue. 
Moreover Giorgio R. Saumat, Mario G. Tabraue and Jeff P.H. Cazeau will be compensated two thousand dollars per board of Directors
meeting attended for all services rendered.
 
On
November 7, 2023, a voting majority entitled by action without meeting of the Company’s shareholders elected Yovan Sanchez as the
Company’s Director of the Board. Mr. Sanchez will be compensated two thousand dollars per board of Directors meeting attended for
all services rendered.
 

F-17
 

 
On
November 8, 2023, a voting majority entitled by action without meeting of the Company’s shareholders elected Emiliano Curia as
the Company’s Independent Director of the Board. Curia will be compensated two thousand dollars per board of Directors meeting
attended for all services rendered.
 
On
March 4, 2024, the Board of Directors of the Company hired Ernesto L. Flores as the Company’s CFO, succeeding Gabrielle Schuster.
Mr. Flores will receive an annual base salary of one hundred sixty thousand dollars, paid biweekly. Additionally, Mr. Flores will receive
bonuses upon completing agreed-upon milestones and may be eligible for a year-end discretionary bonus determined by the Chief Executive
Officer of the Company.
 
NOTE
12 – EQUITY
 
Common
stock:
 
The
Company has authorized 350,000,000 shares of $.001 par value common stock. As of March 31, 2024, and March 31, 2023, the Company had
309,981,819 and 282,611,083 shares, respectively, of common stock issued and outstanding.
 
During
the year ended March 31, 2024, the Company issued 18,864,423
shares of common stock for approximately  $110,000.
 
In
June 2023, the Company issued a total of 13,406,313 shares for the conversion of  two convertible notes by an investor, for $385,000. 
 
During
the year ended March 31, 2024, the Company repurchased 5,200,000 shares of common stock for cash consideration of $178,000, the shares were cancelled.
 
On
November 28, 2023, the Company amended its Articles Incorporation (the “Amendment’) in the State of Florida to reduce its
Authorized Shares of Common Stock from 750,000,000 shares to 350,000,000 shares. The Amendment was passed through a voting majority Shareholder
Written Consent and a Corporate Resolution. The Amendment was stamped and uploaded by the State of Florida on January 8, 2024
 
On August, 2023 the company issued 300,000 shares of common stock as compensation to the Chief Pharmacist Shibu John, for total of $300.
 
NOTE
13 – RELATED PARTY TRANSACTIONS
 
Parties
are considered to be related if one party has the ability to control or exercise significant influence over the other party in making
financial and operating decisions. Transactions with related parties have been disclosed in debt, acquisition and officer’s compensation
notes.
 
June
5, 2023- Total amount of principal and interest converted $165,000 at an applicable avg closing price of $0.0378, discounted after 25%
reduction from avg $0.0283, the number of shares to be issued pursuant to the conversion of the note 5,820,106.
 
June
12, 2023- Total amount of principal and interest converted $220,000 at an applicable avg 10 closing prices of $0.04, discounted after
25% reduction from average $0.029, the number of common stock issued pursuant to the conversion 7,586,207.
 
Officer
compensation totaling $3,611,594 was incurred during the year, paid to Point 96 Consultant owned by Giorgio R. Saumat and Tabraue Consulting,
owned by Mario Tabraue.
 
Additionally,
the Company reimbursed Point 96 Consultant for marketing and SG&A in the amount of $428,000.
 

F-18
 

 
 NOTE
14 – INCOME TAXES
 
The
Company accounts for income taxes under ASC 740, Income Taxes. Under ASC 740, deferred tax assets and liabilities are recognized for
the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities
and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and
liabilities of a change in tax rates is recognized in income in the period, which includes the enactment date. Deferred tax assets are
reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of or all the deferred
tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on
the date of enactment.
 
The
components of deferred tax assets and liabilities at March 31, 2024 and 2023 are approximately as follows:
SCHEDULE OF COMPONENTS OF
DEFERRED TAX ASSETS AND LIABILITIES
 


  
    
   

  
Year ending March, 31 

  
2024  
2023 

Deferred Tax assets: 
    
   

Net Operating loss carry forwards 
$1,664,522  
$1,803,411 

Valuation Allowance 
$(1,491,173) 
$(1,803,411)

Book to tax depreciation difference- Liability 
$(173,349) 
 - 

Net deferred tax asset 
$-  
   

 
The
income tax provision differs from the amount of income tax determined by applying the U.S. federal and state income tax rates to pretax (income) loss from operations for the years ended March 31, 2024 and 2023 due to the following:
SCHEDULE
OF PRETAX (INCOME) LOSS FROM OPERATIONS
 


  
    
   

  
2024  
2023 

Tax Expense 
$151,683  
 - 

Valuation Allowance 
$(138,680) 
 - 

Net tax expense 
$13,003 
 - 

 


Income
tax expense rates for the years ended March 31, 2024 and 2023 is as follows:

SCHEDULE
OF INCOME TAX EXPENSE RATES



  
2024  
2023 

Federal 
 21.0% 
 21%

State 
 5.5% 
 5.5%

Federal and State 
 26.5% 
 26.5%

Valuation 
 (24.9)% 
 (26.5)%

Net effective tax rate 
 1.6% 
 - 

 
ASC
740 contains a two-step approach to recognizing and measuring uncertain tax positions. This first step is to evaluate the tax position
for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained
on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the
largest amount which is more than 50% likely to be realized upon ultimate settlement. The Company considers many factors when evaluating
and estimating its tax positions and tax benefits, which may require periodic adjustments, and which may not accurately anticipate actual
outcomes.
 
The
Company recognizes a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained
on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated
financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized
upon ultimate settlement. As of March 31, 2024, the Company has not recorded any unrecognized tax benefits.
 
Interest
and penalties related to liabilities for uncertain tax positions will be charged to interest and operating expenses, respectively.
The Company has net operating loss carryforwards (NOL) for income tax purposes of approximately $4,129,059
pre 2018, and $3,797,234 post 2018. This loss is allowed to be offset against future income. The tax benefits relating to all timing
differences have been partially used for in the valuation allowance account due to profit generated during fiscal year ending March
31, 2024.
 
Internal
Revenue Code Section 382 (“Section 382”) imposes limitations on the availability of a company’s net operating losses
after certain ownership changes occur. Section 382 limitation is based upon certain conclusions pertaining to the dates of ownership
changes and the value of the Company on the dates of the ownership changes. It was determined that an ownership change occurred in October
2013 and March 2014. The amount of the Company’s net operating losses incurred prior to the ownership changes is limited based
on the value of the Company on the date of the ownership change. Management has not determined the amount of net operating losses generated
prior to the ownership change available to offset taxable income after the ownership change.
 


F-19
 

 
ITEM
9A. CONTROLS AND PROCEDURES
 
EVALUATION
OF DISCLOSURE CONTROLS & PROCEDURES
 
Disclosure
Controls and Procedures
 
Disclosure
controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our
reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified
in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed
to ensure that information required to be disclosed in company reports filed or submitted under the Exchange Act is accumulated and communicated
to management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.
 
We
do not expect that our disclosure controls and procedures will prevent all errors and all instances of fraud. Disclosure controls and
procedures, no matter how well conceived and operated, can provide only reasonable assurance of achieving the desired control objectives.
Further, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and the benefits
must be considered relative to their costs. The design of disclosure controls and procedures also is based partly on certain assumptions
about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under
all potential future conditions.
 
The
Company’s management, including the Chief Executive Officer and Chief Financial Officer have reviewed and evaluated the effectiveness
of the Company’s design and operations of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated
under the Exchange Act) as of the end of the period covered by this annual Report on Form 10-K/A. Based on that review and evaluation,
the Chief Executive Officer and Chief Financial Officer have concluded that as of the end of the period covered by this Annual report,
the Company’s disclosure controls and procedures were ineffective as of March 31, 2024.
 
Management’s
Annual Report on Internal Control Over Financial Reporting
 
Our
disclosure controls and procedures contain components of our internal controls over financial reporting. Our management is responsible
for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined
in Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act as a process designed by, or under the supervision of, the Company’s
principal executive and financial officer and effected by the Company’s board of directors, management and other personnel, to
provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:
 
Pertain
to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets
of the Company.
 

21
 

 
Provide
reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally
accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations
of management and directors of the Company; and
 
Provide
reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s
assets that could have a material effect on the financial statements.
 
The
Company’s management assessed the effectiveness of the Company’s internal control over financial reporting as of the Evaluation
Date. In making this assessment, the Company’s management used the criteria set forth by the Committee of Sponsoring Organizations
of the Treadway Commission (“COSO”) Internal Control-Integrated Framework (2013). The COSO framework is based upon five integrated
components of control: control environment, risk assessment, control activities, information and communications and ongoing monitoring.
 
Based on an evaluation under the supervision and with the participation
of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, Company management has concluded
that the Company’s internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act
were ineffective as of the Evaluation Date based on the number of adjustments from the audit., The Company will continue to improve its
internal controls, to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange
Act is (i) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules
and forms and (ii) accumulated and communicated to the Company’s management, including its principal executive officer and principal
financial officer, as appropriate to allow timely decisions regarding required disclosure.
 
ITEM
9B. OTHER INFORMATION
 
On
July 15, 2023, Wendell Hecker resigned from his role as Chief Financial Officer (“CFO”) position with the Company and was
succeeded by Gabrielle Schuster on July 17, 2023. On March 3, 2024, Gabrielle Schuster resigned from her role as the Company’s
CFO. Their resignations were not the result of any disagreement with the Company or any other entity or any matter relating to the operations,
policies (including accounting or financial policies) or practices of the Company.
 
On
August 14, 2023, Nickolas S. Tabraue, resigned from his role as Chief Compliance Officer position with the Company. His resignation was
not the result of any disagreement with the Company or any other entity or any matter relating to the operations, policies (including
accounting or financial policies) or practices of the Company.
 

22
 

 
PART
III
 
ITEM
10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE (Restated)
 
The
Company does not, at present, have any employees other than the current officers and directors. We have not entered into any employment
agreements, as we currently do not have any employees other than the current officers and directors.
 
Directors
and Executive Officers
 


Name
 
Principal
    Occupation
 
Age
 
Director
    or Officer Since

Giorgio
    R. Saumat
 
Chief
    Executive Officer and Director
 
45
 
2022

Mario
    G. Tabraue
 
President
    and Director
 
45
 
2021

Ernesto
    Flores
 
Chief
    Financial Officer
 
39
 
2024

Christopher
    Rose
 
Chief
    Technology Officer
 
47
 
2023

Jeff
    P.H. Cazeau
 
Independent
    Director
 
56
 
2023

Yovan
    Sanchez
 
Director
    
 
42
 
2023

Emiliano
    Curia
 
Independent
    Director
 
44
 
2023

 
There
are no other people nominated or chosen to become directors or executive officers, nor do we have any employees other than above mentioned
officers and directors.
 
Our
directors hold office until the next annual meeting of shareholders and the election and qualification of their successors. Directors
receive two thousand dollars per Board of Directors meeting attended for serving on the Board of Directors, in addition to the reimbursement
of reasonable expenses incurred in attending meetings if any. Officers are appointed by the board of directors and serve at the discretion
of the board. In March 2024, our Board of Directors appointed a new CFO.
 
Officer
and Director Background:
 
Giorgio
R. Saumat -CEO, Director, & Chairman
 
Mr.
Saumat is an investor and entrepreneur with over 20 years of experience investing, operating, and consulting for private businesses and
investors. Having graduated from Rutgers University in 2001 with an undergraduate degree in Economics and Political Science, he co-founded
CASAU Group as a private equity group specializing in real estate. In 2009 he opened and invested in multiple locations of restaurants
in the greater Miami Area, which he sold in 2013. He then founded POINT96 Consulting to assist private businesses and accredited investors
in realizing their personal and/or organizational objectives through unique strategic planning.
 
Mario
G. Tabraue - President & Director
 
Mr.
Tabraue worked from 1997 until 2002 assisting with real estate transactions as well as first- and third-party insurance claims at the
law firm of Moises Kaba III. During this time, he also free-lanced, creating websites and working with businesses by creating and implementing
new processes in accounting and with digital technologies. From 2002 until 2009, Mr. Tabraue worked for Eller-ITO Stevedoring Company
at the Port of Miami where he served in operations and logistics, first with simple vessel operations, and, as he demonstrated his skills,
advanced to complex operations and finally management of full vessel planning and operations. From 2009 until 2013, Mr. Tabraue worked
for Ceres Marine Terminals as an operations manager, where he was given ever increasing responsibilities until, among his duties, were
negotiating contract issues with union labor officials and contract negotiations with companies such as Royal Caribbean, Mediterranean
Shipping Lines, Hapag-Lloyd and others. In 2013 through 2014 he began working with Zoological Wildlife Foundation, a business founded
by his family in 2008. At the Foundation he restructured operations, tour packages, the accounting systems, and fully automated their
booking system through the company’s website. Ultimately all internal procedures were automated and made paperless. In 2014 Mr.
Tabraue was recruited back to Eller-ITO where he returned as Marine Manager and has advanced to the position of Special Projects Manager.
In 2019, he began work for JCR Medical Equipment, serving as the head of finance. In 2020 Mr. Tabraue purchased RxCompoundStore.com with
the vision of starting a telemedicine platform to expand the company’s reach and to compete in the online market.
 
Jeff
P.H. Cazeau - Independent Director
 
Mr.
Cazeau is an attorney whose practice areas have included Government Contracts, Lobbying and Municipal Law. Mr. Cazeau currently serves
as the City Attorney for the City of North Miami. Prior to becoming City Attorney, Mr. Cazeau assisted clients in obtaining and keeping
contracts with federal, state, and local government entities. Mr. Cazeau is experienced in assisting small, minority, and women owned
businesses in obtaining various socio-economic certifications such as Disadvantaged Business Enterprise (DBE); Airport Concessions Disadvantaged
Business Enterprise (ACDBE) certifications and SBA 8(a). Before attending law school, Mr. Cazeau served nine years as a commissioned
officer in the United States Navy. During his naval career he held several positions, including Anti-Submarine Warfare Officer, Legal
Officer, and Navigator aboard USS ELLIOT (DD 967), and Politico-Military Affairs Officer at United States Southern Command (SOUTHCOM).
 

23
 

 
Ernesto
Flores - CFO
 
Mr.
Flores is an accomplished financial professional with over a decade of experience and a strong educational background. He holds a Bachelor
of Science degree in Accounting from Florida National University and a Master of Science degree in Taxation from Nova Southeastern University.
Throughout his career, Mr. Flores has held significant roles in both large corporations and mid-sized organizations, demonstrating adaptability
and leadership. At St. George Logistics, he served as Divisional Controller, overseeing financial operations and ensuring regulatory
compliance. His four-year tenure at Curated Investments, LLC as Financial Controller highlighted his ability to manage financial functions
effectively and drive strategic initiatives. Mr. Flores possesses a diverse skill set, including preparing companies for growth, implementing
systems integration, maintaining controllership, managing risk, optimizing inventory control, overseeing P&L management, establishing
internal controls, facilitating financial reporting, conducting audits, and driving process improvements.
 
Christopher
Rose CTO
 
Chris
Rose is a dynamic and innovative leader with a diverse background in technology, entrepreneurship, and strategic leadership. In his former
leadership role at a Fortune 100 company, Chris established and managed an enterprise-wide automation factory. That factory, comprised
of a diverse team across the US, UK, and India, achieved significant milestones, including twenty million dollars in annual transactional
cost reduction and the automation of over hundreds business processes.
 
Chris
has always had an entrepreneurial spirit. He brings his passion for, and successful experience with, leading startups to ETST, where
he employs technology to achieve tangible business outcomes, predominantly driving operational efficiency and cost savings.
 
Chris
is known for his hands-on approach, collaborative leadership style, and commitment to developing high-performing teams. A Miami native,
Chris is also an adventurer who enjoys freediving, spearfishing, and boating, and who carries with him an unwavering optimism. With twenty
plus years of technology leadership and exploration behind him, he is uniquely poised to make a significant impact as ETST’s Chief
Technology Officer.
 
Yovan
Sanchez - Director
 
Mr.
Sanchez is a seasoned firefighter/paramedic and a driven entrepreneur. With more than two decades
of dedicated service in the firefighting and paramedic field, he has been a stalwart in his community. In addition to his public service,
Yovan is also a real estate owner and manager in South Florida. In 2011, he took the initiative to establish Hot Box Incubators Corp.
Yovan’s commitment to community development extends to supporting youth programs, culminating in the creation of Miami Springs
Jiu Jitsu in 2022. Furthermore, he possesses over 20 years of valuable experience in the boat and yacht industry, specializing in identifying
opportunities and harnessing them to his advantage. His extensive network of connections across various industries bolsters his ability
to make the most of these opportunities.
 
Emiliano
Curia- Director
 
Dr.
Curia is a physical medicine and rehabilitation physician with expertise in musculoskeletal disorders
and neurorehabilitation after injuries or illness. He completed his residency at Jackson Memorial Hospital and Larkin Community
Hospital, where he also served as Chief Resident. Prior to residency he served as medical research director for multiple pharmaceutical
clinical trials and orthopedic technology development and implementation. He participated in multiple community outreach programs and
developed quality improvement protocols for underserved populations in Miami Dade county. Dr Curia currently treats patients with musculoskeletal
disorders, athletes, and amputees.
 
Committees
of The Board of Directors
 
The
Company is managed under the direction of Giorgio R. Saumat, Mario G. Tabraue, Jeff P.H. Cazeau, Yovan Sanchez and Emiliano Curia.
 
The
Company does not have an executive committee at this time.
 
The
Company has an audit committee of three members of the Board of Directors. Two of the three committee members are independent directors.
 

24
 

 
Officer’s
and Director’s Involvement in Legal Proceedings
 
No
executive Officer or Director of the Company has been convicted in any criminal proceeding (excluding traffic violations) or is the subject
of a criminal proceeding that is currently pending. No executive Officer or Director of the Company is the subject of any pending legal
proceedings. No Executive Officer or Director of the Company is involved in any bankruptcy petition by or against any business in which
they are a general partner or executive officer at this time or within two years of any involvement as a general partner, executive officer,
or Director of any business.
 

ITEM
11. EXECUTIVE COMPENSATION

 
Giorgio
R. Saumat started as CEO on February 13, 2023, without any compensation until October 1, 2023, when a contract became effective for compensation
of twenty one percent of the Company’s monthly revenue within a twelve-month term, paid on the first of the month, based on the
preceding month’s revenue, as long as the Company increases its cash position quarter over quarter. In the event that the Company
does not increase its cash position, the arrangement must be renegotiated, and there will be no payment at the beginning of the new quarter.
Moreover, Mr. Saumat has agreed to waive all rights to back pay and compensation for the work done in the Company prior to September
30, 2023.
 
Mario
G. Tabraue started as President in November 2021, without compensation. On April 1, 2022, Mr. Tabraue received 2,500,000 shares of the
Company’s common stock and received $8,000.00 as a signing bonus for all the work done since executing the November 3, 2021 agreement
for the purchase of RxCompoundStore and Peak’s Curative. Pursuant to this contract, the Executive was to receive four thousand,
three hundred, and thirty-three dollars per month. The frequency of payments was to conform to the Company’s policy of paying its
executives biweekly. In addition, the Executive was to be entitled to 50,000 shares each fiscal quarter. On October 10, 2022, Mr. Tabraue’s
employment agreement was amended to receive no compensation until October 1, 2023, when a contract became effective for compensation
of ten and a half percent of the Company’s monthly revenue within a twelve-month term, paid on the first of the month, based on
the preceding month’s revenue, as long as the Company increases its cash position quarter over quarter. In the event that the Company
does not increase its cash position, the arrangement must be renegotiated, and there will be no payment at the beginning of the new quarter.
Moreover, Mr. Tabraue has agreed to waive all rights to back pay and compensation for the work done in the Company prior to September
30, 2023.
 
Ernesto
Flores was hired as CFO by the company in March 2024, starting with an annual base salary of one hundred sixty thousand dollars, paid
biweekly. Additionally, Mr. Flores will receive bonuses upon completing agreed-upon milestones and may be eligible for a year-end discretionary
bonus determined by the Chief Executive Officer of the Company.
 

25
 

 
Christopher
Rose was hired as CTO by the company in April 2024 with an annual salary of two hundred seventy thousand dollars paid on a biweekly basis.
Additionally, Mr. Rose will receive bonuses upon completing agreed-upon milestones and may be eligible for a year-end discretionary bonus
determined by the Chief Executive Officer of the Company.
 
There
are no other employment agreements between the Company and its executive officers or directors. Our executive officers and directors
have the responsibility of determining the timing of remuneration programs for key personnel based upon such factors as positive cash
flow, shares sales, product sales, estimated cash expenditures, accounts receivable, accounts payable, notes payable, and cash balances.
At this time, management cannot accurately estimate when sufficient revenues will occur to implement this compensation, or the exact
amount of compensation.
 
POTENTIAL
PAYMENTS UPON TERMINATION OR CHANGE-IN-CONTROL
 
SEC
regulations state that we must disclose information regarding agreements, plans or arrangements that provide for payments or benefits
to our executive officers in connection with any termination of employment or change in control of the Company. Such payments are set
forth above in the section entitled “Executive Compensation
 
None
of our executive officers or directors received, nor do we have any arrangements to pay out, any bonus, stock awards, option awards,
non-equity incentive plan compensation, or non-qualified deferred compensation.
 
OUTSTANDING
EQUITY AWARDS AT FISCAL YEAR END
 
None.
 
OPTION/SAR
GRANTS IN THE LAST FISCAL YEAR
 
None.
 
CONSULTING
AGREEMENTS WITH OFFICERS AND DIRECTORS
 
None.
 
DIRECTOR
COMPENSATION
 
As
of October 1, 2023, the Company began compensating each of its members of the Board of Directors two thousand dollars per Board of Directors
meeting attended during their term.
 

26
 

 
INDEMNIFICATION
OF DIRECTORS AND OFFICERS
 
The
Company’s officers and directors are indemnified as provided by the Florida Statutes and the Company’s bylaws.
 
The
Company’s bylaws provide that it will advance to any person who was or is a party or is threatened to be made a party to any threatened,
pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that
he is or was a director or officer of the Company, or is or was serving at the request of Earth Science Tech as a director or executive
officer of another company, partnership, joint venture, trust or other enterprise, prior to the final disposition of the proceeding,
promptly following request therefore, all expenses incurred by any director or officer in connection with such proceeding upon receipt
of an undertaking by or on behalf of such person to repay said amounts if it should be determined ultimately that such person is not
entitled to be indemnified under the bylaws or otherwise.
 
There
are no annuity, pension or retirement benefits proposed to be paid to officers, directors, or employees of the corporation in the event
of retirement at normal retirement date pursuant to any presently existing plan provided or contributed to by Company.
 
ITEM
12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
 
As
of March 31, 2024, we had outstanding 309,981,819 shares of common stock. Each share of common stock is currently entitled to one vote
on all matters put to a vote of our stockholders. The following table sets forth the number of common shares, and percentage of outstanding
common shares, beneficially owned as of the date hereof by:
 


 
●
each
    person known by us to be the beneficial owner of more than five percent of our outstanding common stock;

 
 
 

 
●
each
    of our current directors;

 
 
 

 
●
each
    our current executive officers and any other persons identified as a “named executive” in the Summary Compensation Table
    above; and

 
 
 

 
●
all
    our current executive officers and directors as a group.

 

27
 

 
Beneficial
ownership is determined in accordance with the rules of the SEC and includes general voting power and/or investment power with respect
to securities. Shares of common stock issuable upon exercise of options or warrants that are currently exercisable or exercisable within
60 days of the record date, and shares of common stock issuable upon conversion of other securities currently convertible or convertible
within 60 days, are deemed outstanding for computing the beneficial ownership percentage of the person holding such securities but are
not deemed outstanding for computing the beneficial ownership percentage of any other person. Under the applicable SEC rules, each person’s
beneficial ownership is calculated by dividing the total number of shares with respect to which they possess beneficial ownership by
the total number of outstanding shares. In any case where an individual has beneficial ownership over securities that are not outstanding
but are issuable upon the exercise of options or warrants or similar rights within the next 60 days, that same number of shares is added
to the denominator in the calculation described above. Because the calculation of each person’s beneficial ownership set forth
in the “Percentage Beneficially Owned” column of the table may include shares that are not presently outstanding, the total
sum of the percentages set forth in such a column may exceed 100%. Unless otherwise indicated, the address of each of the following persons
is 8950 SW 74th CT, Miami, FL 33156, USA, and, based upon information available or furnished to us, each such person has sole
voting and investment power with respect to the shares set forth opposite his, her or its name.
 


Beneficial Owner(1) 
Common Stock  
Series B Preferred Stock  
Number of Shares Beneficially Owned(2)  
Percent(3) 

5% Stockholders: 
    
    
    
   

Jose Rodriguez (4) 
 20,500,000  
    
 20,500,000  
 6.61%

Mario A. Portela (5) 
 20,500,000  
    
 20,500,000  
 6.61%

Great Lakes Holdings Group, Inc.(6) 
 23,000,000  
    
 23,000,000  
 7.42%

  
    
    
    
   

Named Executive Officers and Directors: 
    
    
    
   

Giorgio R. Saumat –Chief Executive Officer, Secretary and Director (7) 
 119,702,407  
 1,000,000  
 119,702,40  
 38.62%

Yovan Sanchez (8) 
 650,000  
    
 650,000  
 0.21%

Mario G. Tabraue (9) 
 12,250,000  
    
 12,250,000  
 3.95%

All executive officers and directors as a group (6 persons) 
    
    
 132,602,407  
 42.78%

 


(1
Except
    as otherwise indicated, the persons named in this table have sole voting and investment power with respect to all shares of common
    stock shown as beneficially owned by them, subject to community property laws where applicable and to the information contained in
    the footnotes to this table.

 

28
 

 


(2)
Under
    SEC rules, a person is deemed to be the beneficial owner of shares that can be acquired by such person within 60 days upon the exercise
    of options or the settlement of other equity awards.

 
 

(3)
Calculated
    on the basis of 309,981,819 shares of common stock outstanding as of March 31, 2024, plus any additional shares of common stock that
    a stockholder has the right to acquire within 60 days after March 31, 2024. Further, the positions listed are as of the date of this
    Registration Statement. 

 
 

(4)
Jose
    Rodriguez received 20,500,000 shares of the Company’s restricted Common Stock on November 8, 2022, through a settlement and
    release agreement part of the amended Purchase Agreement for the Membership units of both RxCompound and Peaks, see November 8, 2022’s
    8-K filing.

 
 

(5)
Mario
    A. Portela received 2,750,00 shares of the Company’s restricted Common Stock through a settlement release agreement to satisfy
    his convertible promissory note, see October 28, 2022’s 8-K filing. On November 8, 2022, Mr. Portela received 17,750,000 shares
    of the Company’s restricted Common Stock through a settlement and release agreement as part of the amended Purchase Agreement
    for the Membership units of both RxCompound and Peaks, see November 8, 2022’s 8-K filing.

 
 

(6)
Great
    Lakes is owned and controlled by Dr. Issa El-Cheikh.

 
 

(7)
Giorgio
    R. Saumat has been a Director of the Company since October 2022 and CEO of the Company since February 2023. Mr. Saumat obtained 62,562,440
    shares of the Company’s restricted Common Stock on October 24, 2022, from a settlement and release agreement, see October 28,
    2022’s filed 8-K. Mr. Saumat purchased a total of 42,200,000 shares at $0.005 per shares directly from the Company and 1,533,654
    shares in the open market between October 2022 and February 2024, all shares obtained by Mr. Saumat are filed via FORM-4 in compliance
    with the SEC. Additionally, Mr. Saumat received a total of 13,406,313 shares of common stock from converting his two convertible
    Notes, 5,8020,106 shares at $0.0283 per share on June 5, 2023, and 7,586,207 shares at $0.0290 per share on June 12, 2023.

 
 

(8)
Yovan
                                            Sanchez has been a member of the Board of Directors since November 7, 2023. His 650,000 shares
                                            of common stock were obtained through purchasing on the open market between December 2023,
                                            and March 2024, all shares obtained by Mr. Sanchez are filed via FORM-4 in compliance with
                                            the SEC.
 

(9)
Mario
    G. Tabraue has been the President and Director of the Company since November 2021. Mr. Tabraue received 2,000,000 shares of the Company’s
    restricted Common Stock in April 2022 upon executing his employee agreement and 10,250,000 shares of the Company’s restricted
    Common Stock through a settlement and release agreement as part of the amended Purchase Agreement for the Membership units of both
    RxCompound and Peaks, see November 8, 2022’s 8-K filing.

 
Rule
13d-3 under the Securities Exchange Act of 1934 governs the determination of beneficial ownership of securities. That rule provides that
a beneficial owner of a security includes any person who directly or indirectly has or shares voting power and/or investment power with
respect to such security. Rule 13d-3 also provides that a beneficial owner of a security includes any person who has the right to acquire
beneficial ownership of such security within sixty days, including through the exercise of any option, warrant or conversion of a security.
Any securities not outstanding which are subject to such options, warrants or conversion privileges are deemed to be outstanding for
the purpose of computing the percentage of outstanding securities of the class owned by such person. Those securities are not deemed
to be outstanding for the purpose of computing the percentage of the class owned by any other person.
 
There
were no grants of stock options since inception to March 31, 2024. We do not have any long-term incentive plans that provide compensation
intended to serve as an incentive for performance.
 
The
Board of Directors of the Company has not adopted a stock option plan. The company has no plans to adopt one but may choose to do so
in the future. If such a plan is adopted, this may be administered by the board, or a committee appointed by the board (the “Committee”).
The Committee would have the power to modify, extend or renew outstanding options and to authorize the grant of new options in substitution
therefore, provided that any such action may not impair any rights under any option previously granted. The Company may develop an incentive-based
stock option plan for its officers and directors and may reserve up to 10% of its outstanding shares of common stock for that purpose.
 

29
 

 
ITEM
13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
 
On
November 7, 2023, a voting majority entitled by action without meeting of the Company’s shareholders elected Emiliano Curia as
the Company’s Independent Director of the Board. Mr. Curia will receive two thousand dollars per Board of Directors meeting attended
and for all services rendered.
 
EQUITY
ISSUANCES TO OFFICERS AND DIRECTORS
 
None.
 
ITEM
14. PRINCIPAL ACCOUNTING FEES AND SERVICES.
 
During
the fiscal year ended March 31, 2024, we incurred approximately $65,000 in audit and audit related fees to our principal independent
accountants for professional services rendered in connection with the audit of financial statements for the year ended March 31, 2024.
We did not incur any other fees or tax-related services fees during that time period.
 
Assurance
Dimensions LLC is the Company’s principal auditing firm for fiscal year ending March 31,2024, which billed the Company $20,000 for audit services during the year. The Company’s Board of
Directors has considered whether the provisions of audit services are compatible with maintaining Assurance Dimensions LLC’ independence. The engagement of our independent registered public accounting firm was approved by
our Board of Directors prior to the start of the audit of our consolidated financial statements for the year ended March 31, 2024.
 
R. Bolko, CPA P.A. was the audit firm that performed audit services for
year ended March 31, 2023.
 
The
following table represents aggregate fees billed to the Company for the Fiscal Years ended March 31, 2024, and 2023.
 


Services 
2024  
2023 

Audit fees 
$65,000  
$10,000 

Audit related fees 
 -  
 - 

Tax fees 
 7,500  
 - 

All other fees 
 -  
 - 

Total fees 
$72,500  
$10,000 

 


30
 

 
PART
IV
 
ITEM
15. EXHIBITS
 
The
following exhibits are incorporated into this Form 10-K Annual Report:
 


Exhibit
 
 
 
Incorporated
    by Reference
 
Filed
    or Furnished

Number
 
Exhibit
    Description
 
Form
 
Exhibit
 
Filing
    Date
 
Herewith

 
 
 
 
 
 
 
 
 
 
 

31.1
 
Certification of Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a) As adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
 
 
 
 
 
 
 
X

 
 
 
 
 
 
 
 
 
 
 

31.2
 
Certification of Chief Executive Officer Pursuant to Exchange Act Rule 13a-14(a) As adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
 
 
 
 
 
 
 
X

 
 
 
 
 
 
 
 
 
 
 

32.1
 
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 
 
 
 
 
 
 
X

 
 
 
 
 
 
 
 
 
 
 

32.2
 
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
 
 
 
 
 
 
 
X

 
 
 
 
 
 
 
 
 
 
 

101.INS
 
Inline
    XBRL Instance Document
 
 
 
 
 
 
 
X

 
 
 
 
 
 
 
 
 
 
 

101.SCH
 
Inline
    XBRL Taxonomy Extension Schema
 
 
 
 
 
 
 
X

 
 
 
 
 
 
 
 
 
 
 

101.CAL
 
Inline
    XBRL Taxonomy Extension Calculation Linkbase
 
 
 
 
 
 
 
X

 
 
 
 
 
 
 
 
 
 
 

101.DEF
 
Inline
    XBRL Taxonomy Extension Definition Linkbase
 
 
 
 
 
 
 
X

 
 
 
 
 
 
 
 
 
 
 

101.LAB
 
Inline
    XBRL Taxonomy Extension Label Linkbase
 
 
 
 
 
 
 
X

 
 
 
 
 
 
 
 
 
 
 

101.PRE
 
Inline
    XBRL Taxonomy Extension Presentation Linkbase
 
 
 
 
 
 
 
X

 
 
 
 
 
 
 
 
 
 
 

104
 
Cover
    Page Interactive Data File (embedded within the Inline XBRL document)
 
 
 
 
 
 
 
X

 
ITEM
16. FORM 10-K SUMMARY
 
None.
 

31
 

 
SIGNATURES
 
Pursuant
to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
 


 
EARTH
    SCIENCE TECH, INC.

 
 
 

Dated:
    June 28, 2024
By:
/s/
    Giorgio R. Saumat

 
 
Giorgio
    R. Saumat

 
Its:
CEO
    and Director

 

32

 
